Budget talks at ‘pinch point’ as strike threat looms, says Stormont minister

Northern Ireland budget negotiations are at a “pinch point” as the potential for public sector strikes threatens “catastrophe” in the region, a Stormont minister has said.

UUP Health Minister Robbie Butler said one of the reasons for the ongoing stalemate is that conditions from the Northern Ireland Secretary that there can be no overspend in departments this year “can’t be fulfilled”.

The region remains without an agreed budget eight months into the current financial year as Executive parties maintain they cannot set a plan with the level of finance on offer from Westminster.

Stormont departments are currently operating on contingency budgets of 95% of last year’s spend.

Secretary of State Sir Chris Bryant offered the Executive a package worth more than £1.5 billion to be spent over three years, with a further £270 million in Barnett consequentials following the autumn UK Budget, in an effort to secure agreement on a budget.

The Royal College of Nursing is currently balloting for strike action because of the delayed implementation of their 2026/27 pay uplift.

Executive party leaders met with Sir Chris at Hillsborough Castle on Thursday in an effort to get a financial plan over the line.

UUP leader Jon Burrows said his party was going into the negotiations in “deal mode”.

“We want to go further and faster in fixing the health service, but we also need to address public sector pay right across Northern Ireland and for that we need a budget,” he said.

Mr Butler said the Executive was in agreement that the £1.5 billion needed to be “reprofiled” and in its current constitution “wasn’t enough”.

“The Secretary of State has a number of conditions attached which can’t be fulfilled in the offer that he has made, because one of those conditions is having a balanced budget this year,” he said.

“And certainly, when I speak for health, and we look at some of the really good work that has been done, not only to deliver better services, but also to see real in-year savings, that good work would be at risk if the budget isn’t balanced this year, and unfortunately, the in-year money this year would still mean that falls short.

“But we want, as the leader has said, we want to work with the Secretary of State constructively in that, so that we avert the catastrophe that possibly could happen if we have public sector strikes and we don’t do all that good work, but we are realistic too about what needs to happen.”

Mr Butler added: “In the conversations with the Secretary of State he certainly seems to be listening and he has certainly adjusted his offer a number of times, but I think we are at the pinch point now, because ballot action is now happening.

“I know there will be no derogations in strike action that is taken, and particularly for our health and social care workers, where they’ve been on the precipice, year after year.

“I’ve said about it being a rinse and repeat moment. We need to step away from that. I think the people that will be in this building today have the ability to do that, now we’ll see if they can actually get it over the line.”

Sinn Féin president Mary Lou McDonald and vice president Michelle O’Neill – Northern Ireland’s First Minister – were welcomed to Hillsborough with a kiss and embrace from Sir Chris who met the party delegation at the gates.

Speaking before the meeting Ms McDonald said she hoped it would be “a productive day”, and any budget would need to include “necessary resources for decent public services and of course for public service pay”.

“We’ve made it clear to the Secretary of State that the proposals thus far have fallen short and been inadequate so we’re here again to press that case and make sure we do the very best for everybody who lives in this part of Ireland,” she said.