Government touts benefits for Northern Ireland from chancellor Rachel Reeves' budget
The UK government has declared that its budget today heralds the “largest spending review settlement for Northern Ireland Executive in the history of devolution”.
A statement this afternoon from the Treasury, following chancellor Rachel Reeves delivering her budget to parliament, states that the Province is in for a “£370m budget boost for public services” as a result.
Its statement said: “Rachel Reeves recognised Northern Ireland's £63 billion contribution to the UK economy, with multi-million pound investments in a Belfast to Derry-Londonderry R&D growth corridor and confirmation that advanced manufacturing will be the focus for the Northern Ireland Enhanced Investment Zone.
"The chancellor is also ensuring Northern Ireland's public services are fairly funded, with an extra £370 million through the Barnett Formula on top of the largest ever settlement for the Northern Ireland Executive in the history of devolution at the Spending Review.
“£235 million has also been allocated to transform Northern Ireland’s public services.
"Despite wages growing more in the first year of this government than at any point in the 2010s, the chancellor was clear too many families are still struggling with the cost of living which is why the budget included a range of measures to cut bills and boost pay packets.
"Saying that the fairest way to help people with the cost-of-living was to cut inflation and increase wages, Reeves also confirmed she will fund the Northern Ireland Executive to remove the two-child benefit cap, increase pensions and slash energy bills if they choose to do so.
"Scrapping the two-child cap in Northern Ireland could lift thousands of children in Northern Ireland out of poverty.”
The budget also confirmed a £16.6m “UK Internal Market package” designed to help firms overcome the effects of the Irish Sea border.
This will, the Treasury has said, “create a 'one stop shop' support service to help businesses cut through bureaucracy, navigate the Windsor Framework, expand trade across the UK and benefit from Northern Ireland’s unique dual access to the UK and EU markets”.
Meanwhile Hilary Benn, Secretary of State for Northern Ireland, said: “This budget will help families in every part of Northern Ireland who have been hit by the rising cost of living for too long.
"We will scrap the two child benefit limit, directly benefiting thousands of families here, increase the State Pension by 4.8% from April 2026, and the minimum wage.
“We are also providing an additional £370m over the SR period through the operation of the Barnett Formula to the Northern Ireland Executive to deliver vital public services such as healthcare and education, on top of the record spending review settlement.
“We are also backing Northern Ireland businesses with a £16.6m UK Internal Markets Package to improve trade between Great Britain and Northern Ireland under the Windsor Framework.”
The budget revealed that the National Living Wage will rise by 4.1% in April, and the National Minimum Wage by 8.5%, which the government estimates will “help around 170,000 workers in Northern Ireland”.