The Wastewater Infrastructure Group — representing housing, construction and business organisations including the Construction Employers Federation, the Chartered Institute of Housing, the Northern Ireland Federation of Housing Associations, Manufacturing NI and NI Chamber — has warned that Northern Ireland's Draft Budget 2026–30 acknowledges but does not fix the escalating wastewater infrastructure crisis.

Independent analysis commissioned last year by NI Chamber, CEF and NIFHA with Grant Thornton and Turley, together with findings from the NI Fiscal Council, estimated a £2.0bn capital funding gap in wastewater infrastructure. The shortfall was assessed as preventing the delivery of 6,150 homes over the next three years, costing 2,530 construction jobs and an estimated potential £271.4m of gross value added to the Northern Ireland economy.

While the Draft Budget proposes additional funding for water infrastructure via a 5% increase in household regional rates, the Group says this still falls well short of what is needed to lift development constraints across the region. The coalition estimates a remaining funding gap of £1.36bn during the draft budget period (2026–2030), and £1.29bn for the next Price Control period. Without closing that gap, the same bottlenecks will continue to stifle growth and make families worse off, it argues.

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Against this backdrop, the Group has renewed its call for a low-cost, progressive Infrastructure Levy payable through the rates system. Averaging £1.25 per household per week — £65 per year and down from the £100 per average household proposed in June 2025 — the levy would, the Group believes, create a sustainable, multi-year investment model for NI Water and allow stalled housing, industrial and regeneration projects to proceed.

A WIG spokesperson said: "The Draft Budget rightly identifies wastewater as a strategic priority, but it does not close the funding gap that is blocking new homes and business development across Northern Ireland. A modest, progressive levy of £1.25 a week per average household remains the most practical, affordable and fair way to unlock essential investment, support economic growth and protect our environment.

"Under the Group's proposal, households on benefits and housing association tenants would be exempt, while contributions would scale with property value — ensuring the levy is fair, progressive and affordable. For example, a house less affluent parts of Belfast with a market value of £109,000 and a rates bill of £422 would face a levy of £23 a year or approximately 44 pence per week whilst those with larger homes valued above £400,000 in North Down, with a rates bill of £3,815, would pay more – a levy of £204 a year or approximately £3.90 per week."

The spokesperson continued: "The Draft Budget makes clear that the Executive cannot meet wastewater needs from existing capital envelopes. Our proposal sets out a solution via a progressive investment model which protects the most vulnerable households. For around a pound a week, Northern Ireland could better protect the environment, unlock housing, support inward investment, protect jobs, and end the development moratoria affecting dozens of towns."

The Group contends that wastewater capacity is now one of the most binding constraints on Northern Ireland's economic potential, hampering homebuilding, manufacturing expansion and town centre regeneration. Without agreement on an innovative, long-term funding model this year, these constraints will persist into the next decade.