The South Down representative said:
“The Executive still faces an overcommitment of £97 million in the current 2024/25 financial year. The pressure to deliver a balanced budget remains immense.
When you further consider additional challenges on the horizon, including an annual increase of approximately £200 million in public sector costs due to Labour’s rise in employer National Insurance Contributions, the situation in the 2025/26 financial year is deeply concerning if Treasury does not provide additional revenue to the Executive.
Let us not forget that the impact of Rachel Reeves’ decision goes much further too. Our local councils face an estimated additional cost of £12 million, which, if left unsupported by the Treasury, will inevitably be passed on to ratepayers. Furthermore, no assessment has been made of the financial burden on voluntary and community organisations, GPs, dentists, or independent service providers. The implications for these sectors will be significant and are likely to impact of service provision to the public.
Faced with these realities, what we need is absolute clarity from the Finance Minister as to the picture we face in relation to public finances, and how she intends to protect the public purse and the delivery of key services.
Our public services are at serious risk of being taxed to death. Without immediate intervention and transparency from the Treasury and the Department of Finance, Northern Ireland’s economy and essential services will be pushed to breaking point.”