While the 2023/24 NI budget announced in April by the Secretary of State, Chris Heaton-Harris, only reduces the overall Departmental budgets by 0.4%, this figure masks the impacts as it does not reflect the extent of pressures due to inflation, rising costs, increasing demands and pay pressures.
The Northern Ireland Construction Group (NICG) is encouraged that many Departments have taken the opportunity to communicate the budget implications to the public, and several Departments have started Equality Impact Assessment consultations on the implications of budget allocations.
It is clear that the stark options included in these consultation documents will have a significant impact on people visiting, living and working in Northern Ireland.
NICG is particularly concerned that the operation and maintenance of our essential infrastructure continues to be underfunded. Such assets underpin the daily functions of our society and dramatic cuts to these will have far-reaching implications. NICG is alarmed by the options being considered by the Department for Infrastructure such as switching off streetlights, providing no winter road gritting, reducing our water and wastewater services, redrawing public transport provision and a reduction to ‘emergency-only’ services for road maintenance and flood risk management.
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Equally concerning is the proposal from the Department for Communities to reduce the NI Housing Executive budget, saying that this will likely impact on their ability to ‘deliver better homes and support people into independent living’. DfC is also considering a reduction in investment in public realm and regeneration projects which will impact the quality of life of citizens and hamper economic development of retail and hospitality businesses.
The Department for the Economy has also indicated that cuts to their budgets will impact on skills and education initiatives, including key programmes such as All Age Apprenticeships.
It has already been confirmed that the Department of Education will not be awarding any new contracts for extensions or new schools in 2023/24 – pausing the process for these will impact the quality of the teaching environment and the need to provide modern, fit-for-purpose facilities.
Jenny Green, Chair of NICG and Northern Ireland Director for the Institution of Civil Engineers (ICE) said: "Infrastructure projects and services underpin the daily activity of our society, and the budget crisis will have far-reaching implications.
"The feedback on the Departmental proposals from the groups we represent is alarming as they will impact on every citizen and visitor to Northern Ireland – and some of the options under consideration could well put people at serious risk of harm.
"Beyond that, there are implications looming for the wider economy and, in particular, for our young people. While NICG understands that the budget situation is difficult but, if allowed to continue, we will see skilled workers seek opportunities elsewhere and will reduce the scope for skills development across our workforce. This will reduce our economic output and our attractiveness for inward investment in the future.
"Furthermore, we need political leadership to address the climate crisis, and to put in place the policies and resources to deliver on the net-zero and decarbonisation commitment while helping to address the cost-of-living pressures being experienced by households.
"The construction industry has a key role to play in the maintenance and operation of our essential infrastructure and is working to support the delivery of net-zero and other objectives. However, political leadership is needed and NICG calls for an immediate return of the NI Executive and the Assembly."
