Reeves backs Northern Ireland business and public services at Budget
Source: gov.uk (2025-11-26)

Northern Ireland families and businesses have been backed by a Budget to cut the cost-of-living, boost UK trade, and invest in public services, as the Chancellor reaffirmed her commitment to drive economic growth.

- £370 million budget boost for public services following largest Spending Review settlement for Northern Ireland Executive in the history of devolution
- Pledge to help Northern Ireland Executive address cost-of-living for working families
- Chancellor announces £16.6 million UK Internal Market package to boost trade between Northern Ireland and Great Britain and back innovation sectors
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.

Secretary of State for Northern Ireland, Hilary Benn MP, 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 £370 million 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 £16.6 million UK Internal Markets Package to improve trade between Great Britain and Northern Ireland under the Windsor Framework.

The budget also brings a new £16.6 million UK Internal Market package to smooth trade across the Irish Sea. This will see the creation of a new ‘one stop shop’ to help small and medium enterprises take advantage of their access to the UK and EU markets, with £2.25 million for Intertrade UK to strengthen trade links between Northern Ireland and Great Britain.

The move comes as current UK-EU negotiations are set to remove routine checks on animal and plant products moving from Great Britain to Northern Ireland.

Reeves also announced reforms to modernise the tax system, asking those with broader shoulders to contribute more through long-overdue fair reforms.

Backing growth through business measures and easing trade pressures

The £16.6 million UK Internal Market package will see the creation of a “one stop shop” support service to help businesses navigate the Windsor Framework, enabling businesses based in Northern Ireland to take advantage of their access to the UK and EU markets.

It will be delivered in partnership between the UK Government and Northern Ireland Executive, ensuring support meets local needs and delivers everyday benefits for the economy of Northern Ireland.

Innovation and business investment:
- The Enhanced Investment Zone will focus on advanced manufacturing (photonics and biotechnology), and is expected to leverage over £230 million in private investment and support creation of more than 1,000 jobs over 10 years.
- £30 million recently announced for Belfast to Derry-Londonderry Corridor to develop R&D strengths in cybersecurity and digital tech.
- Continuing to progress the new Defence Growth Deal, adding to 600 roles already directly supported by UK Government defence spending in Northern Ireland.
Action to address the cost-of-living:

This Budget provides direct support for families:
- Raising the National Living Wage by 4.1% and National Minimum Wage by 8.5%—building on April 2025 increases to help around 170,000 workers in Northern Ireland.
- Extending the fuel duty freeze and 5p cut, saving the average driver £49.
- The UK Government will fund the Northern Ireland Executive to remove the two-child benefit cap and increase the State Pension by 4.8% from April 2026 should it choose to do so.
- The Northern Ireland Executive will also be supported to develop comparable household energy bill support, should it choose to do so.
Investment in public services:
- The Budget provides an extra £370 million for the Northern Ireland Executive to invest in its priorities, such as healthcare, education and transforming public services.
- £185 million over three years committed at June Spending Review to transform Northern Ireland’s public services and ensure taxpayers’ money is properly spent.
More information
- Welfare is devolved in Northern Ireland. The UK Government will fund the Northern Ireland Executive to remove the two-child limit for families in Northern Ireland should it choose to do so.
- Pensions are devolved in Northern Ireland. The UK Government will fund the Northern Ireland Executive to increase pensions by 4.8% by May 2026 should it choose to do so.
- Northern Ireland has a separate energy market from the rest of the UK, with its own rules and regulator. The UK Government will help the Northern Ireland Executive design comparable household energy bill support if they choose to do so.
- The changes to dividend and savings tax rates apply UK wide.
- The changes to property income rates will apply to Northern Ireland from April 2027.