O'Neill urges ministers to agree multi-year budget

The Northern Ireland Executive is "obliged to do all it can" to agree a multi-year budget for Stormont departments, First Minister Michelle O'Neill has said.

Finance Minister John O'Dowd published draft proposals last week but they have been roundly criticised by other parties, with the DUP calling them "deeply flawed".

A multi-year budget would allow departments to plan longer-term spending and the executive has not agreed one for more than a decade.

Speaking on Monday as the assembly members returned from their Christmas break, O'Neill accepted the executive could end up in stalemate over the issue but insisted: "That's not my intention... my intention is to work with others."

The first minister said the funding on offer from London was "inadequate" and that all ministers had hard choices to make.

"In many areas where we want to advance, the DUP want to halt progress but this is a scenario in which we all are obliged to find ways forward," she added.

Democratic Unionist Party (DUP) leader Gavin Robinson said his party would engage in discussions about agreeing priorities for the budget.

However, he added: "There's no point having a budget if it doesn't work - that doesn't make sense.

"The prize can't just be three years alone, it has to be with the finances required... for the issues that affect our society."

Under the draft budget for 2026/27, only four departments would see a mild increase in their budgets - education, health, justice and infrastructure.

However, the figures currently do not reflect any potential overspend by departments for this year.

Health Minister Mike Nesbitt had previously said he was on course to bust his budget by up to £100m to meet the cost of pay awards for healthcare workers this year.

Education Minister Paul Givan has also made clear staffing and teacher pay costs mean he will struggle to balance his budget for this year.

Alliance leader and Stormont Justice Minister Naomi Long said "toxicity" between the parties needs to stop in order to focus on delivery.

"We don't have forever in this mandate, we've got to inject pace into this and we won't do that by taking each other on in the chamber week by week," she said.

"My department I know will suffer next year... we have got to deliver within our means."

The SDLP, Stormont's official Opposition, said the public is being "gaslighted" by the executive in publishing a draft budget document but being unable to deliver transformation of public services.

Its leader Claire Hanna said: "Confidence will slip further and further away from what we were told to expect from the executive."

She said it would be a "damning indictment" if the executive is unable to agree a multi-year budget.

The document is still out for consultation for seven weeks, with the intention of ministers agreeing a budget to have it in place for the start of the new financial year.

Even if there is overall agreement on a budget, there is likely to be slippage as the budget requires legislation in the assembly before it can take effect.