Weekly Bulletin. What you need to know this week.

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Finance Minister raises concern over employers’ National Insurance rise on public sector
On Wednesday (22 January), Finance Minister Caoimhe Archibald appeared before the Northern Ireland Affairs Committee in Westminster where she raised concern over a number “adverse” decisions in the Autumn Budget in relation to the impact of public service delivery, in particular the impact of increasing employers’ National Insurance contributions on public sector employers in NI. The Minister was giving evidence to the Committee as part of its follow-up inquiry into the funding and delivery of public services in NI. She told the Committee that the cost for departments and their agencies, excluding healthcare providers and local councils, is an estimated to £200 million for 2025/2026. The increase is set to take effect from April 2025. While the Chancellor has said support will be provided for public sector employers, Minister Archibald noted that this will likely “fall far short of what is needed…possibly by the region of £100m.” The Minister has subsequently written to the Treasury seeking “urgent clarity” on how much funding will be forthcoming and calling for these costs to be met in full.
What Next: Minister Archibald informed the Committee that an independent review into the level of funding needed for Northern Ireland will be conducted by Prof Gerry Holtham, who led the Holtham Commission in Wales. The review is expected to be carried out in time to be considered as part of the next Spending review for 2026/2027.

NI Water officials tell Committee all areas of NI now impacted by unsatisfactory wastewater infrastructure
On Thursday (23 January), the Assembly Committee for Communities received a briefing from NI Water Officials in relation to Housing Supply and Infrastructure. Dr Garry Curran (Head of Metering and Developer Services NI Water) provided a stark overview of the condition of the region’s wastewater infrastructure assets, and how this is constraining development. He said that all areas across Northern Ireland are now impacted by unsatisfactory wastewater infrastructure, and 40% of storm overflows are classed as unsatisfactory, meaning they need upgraded or need to be closed. Dr Curran said that there is a development plan in place by NIW, but funding for it faces a £0.8bn shortfall for the next eight years. These shortfalls will begin to impact water management, meaning NIW are unable to create sludge disposal facilities and measures to transition to a net zero environment. Dr Curran cautioned that the severity of this issue is contributing towards NI’s wastewater and water environment becoming a severe, permanent problem, adding that these issues will negatively impact the aims of the Programme for Government, especially those concerning housing, the economy and environment.
What Next: Turning again to the shortfall in funding, Dr Curran added there is a need of just under £4 billion of funding over the next 6 year period, to address underfunding, improve standards of assets and achieve net zero targets. Comparing this to the current capital investment of £321 million per year for 6 years, NI Water is 3 times under what is needed.

UK Government rejects request to pull Stormont brake
On Monday (20 January), the UK Government rejected a request from Northern Ireland’s unionist parties to trigger the so-called ‘Stormont brake’, a post-Brexit mechanism to stop new EU rules on the packaging and labelling of chemicals from coming into effect in Northern Ireland. In a letter issued by the Secretary of State for NI Hilary Benn to Speaker of the Northern Ireland Assembly Edwin Poots MLA, Benn said the UK Government had concluded that the threshold for using the Brake had not been met. Mr Benn defended his decision after facing criticism from unionist parties and denied that the UK-EU relationship was a factor, BBC News NI reported. DUP Leader Gavin Robinson MP expressed his disappointment regarding the decision, however, he welcomed that the Government had committed to taking action to ensure there is no divergence as a result of the motion, noting that was what was of fundamental importance to his party. Mr Robinson was referring to a commitment made by the Secretary of State to “take the steps necessary to avoid new barriers arising from the Amending Regulation within our classification, labelling and packaging regimes for chemicals”, including the launch of a consultation on applying a consistent regime across the United Kingdom.
What Next: Speaking to BBC Newsline, Mr Benn said the consultation would be to “ensure that there isn’t a regulatory problem so that people in NI can continue to get the chemicals they want”.

Stakeholder Watch

Sammy Wilson MP (DUP, East Antrim): “I am disappointed that the Speaker did not grant my request for an Urgent Question on the Stormont Brake. The Sec of State must recognise that his continued dismissal of unionist views, expressed through legitimate Assembly mechanisms, will have consequences“

Alliance : “UK Government has unique opportunity to secure future of power-sharing, says @naomi_long as she writes to Prime Minister about reform of our institutions. See more here”.

Robin Swann MP (UUP, North Antrim): “Health in Northern Ireland deserves better than a year by year budget if we want to achieve true transformation”.

SDLP: “SDLP Foyle MLA @MarkHDurkan has slammed the Executive’s ‘half hearted’ approach to homelessness in the midst of a housing crisis. Read more.

Gerry Carroll MLA (PBP, West Belfast): “Stormont has a thing or two to show Dáil Éireann about acting the opposition whilst being in government”.

Other stories

£1.2 million Regional Change Fund for Ending Violence Against Women and Girls
On Tuesday (21 January) the First Minister and deputy First Minister announced a “major investment” of £1.2 million for community and voluntary organisations with the expertise to lead on driving society-wide action. The funding is part of the £3.2 million allocated for Ending Violence Against Women and Girls Change Fund. The deputy First Minister Emma Little-Pengelly stated that the funding is necessary for ending violence against women and girls as the Government alone cannot resolve this issue, it needs collaboration with the community and voluntary sectors.

Labour Market Statistics January 2025 published
On Tuesday (21 January) the Department for the Economy published a summary of the Labour Market Statistics which were produced by NISRA. The results showed that payrolled employees decreased over the month and median earnings increased. It also showed that the seasonal unemployment rate for the period September-November 2024 was 1.7%, which showed a decrease from the previous quarter.

First Minister says she will engage with President Trump
On Tuesday (21 January), First Minister Michelle O’Neill said that she will “never agree” with new US President Donald Trump, but that she will engage with him on NI interests like “economic growth, investment and the peace process”. According to BBC News, Deputy First Minister Emma Little-Pengelly said she will work “with the president no matter who that is” and that her focus is on building a “constructive” relationship with the Trump administration. Both leaders were speaking at the formal launch of the Strategic Framework to end Violence Against Women and Girls. In response, SDLP Opposition Leader Matthew O’Toole urged The Executive office to uphold “a clear set of principles” on climate policy and human rights laws.

£313m investment for Belfast Harbour capital projects
On Tuesday (21 January) Belfast Harbour unveiled a ‘transformative’ new strategy setting out a programme to invest more than £300m in capital projects across the port and Harbour Estate over the next five years. The strategy – Advance Regional Prosperity 2025-2029 – outlines Belfast Harbour’s plans to invest £208m in significant port improvements and £105m in the ongoing regeneration and development of the Harbour Estate and waterfront. The strategy includes the largest single capital project ever undertaken by Belfast Harbour, a proposed £90m investment in a new deepwater quay which will be able to accommodate some of the world’s largest cruise vessels and also expand the port’s capacity and capabilities for offshore wind turbine assembly and installation.

NI Housing Executive board appointments
On Thursday (23 January) the Department for Communities announced that Minister Gordon Lyons MLA has appointed Councillor Aoife Finnegan, Councillor Stephen McIlveen and Councillor Deirdre Varsani as Board Members of the Northern Ireland Housing Executive (NIHE) with effect from 8 January 2025 until the next local council elections.

Former UUP Cllr Darryl Wilson joins the DUP
On Monday (20 January) the DUP confirmed that former UUP and independent councillor Darryl Wilson has joined the party as a councillor in Ballymoney. First elected in 2014, Councillor Wilson was formerly part of the Causeway Coast and Glen Borough Council under the UUP before quitting the UUP last year. DUP Leader Gavin Robinsons aid he was “delighted” to welcome Mr Wilson.

Across the border

Micheál Martin elected Taoiseach at the second attempt after chaotic scenes in the Dáil
Micheál Martin was eventually elected as Taoiseach (PM) on Thursday after the first attempt to elect him was shouted down by opposition parties the day before. There were chaotic scenes in the Dáil (Ireland’s House of Commons) on Wednesday, as proceedings were suspended twice and ultimately abandoned before the election of a new Taoiseach could take place. The Opposition parties were objecting to four Independent TDs who support the incoming Government being allowed to join a “technical group” that would afford them Opposition speaking time. On Wednesday evening, Sinn Féin leader Mary Lou McDonald claimed the government had “demonstrated incredible arrogance”, while Martin said the delay has been “premeditated, coordinated and a choreographed” position by the opposition and in particular Sinn Féin. A compromise was reached on Thursday morning that allowed business to proceed, in what the Irish Times called an “uneasy, and perhaps only interim, ceasefire”, with the speaking rights question still unresolved.

New Cabinet appointed, criticised for lack of gender and regional balance
Micheál Martin has named his new Cabinet. Fine Gael leader Simon Harris will serve as Tánaiste (deputy PM) as well as Minister for Foreign Affairs and Trade and Minister for Defence. Only one senior minister retained their role from the previous Government (Fine Gael’s Peter Burke as Minister for Enterprise), and only one minister was demoted (Fianna Fáil’s Charlie McConalogue, formerly Minister for Agriculture), while the rest were reshuffled. Two new Ministers have been promoted to high-profile roles: James Browne as Minister for Housing and Jennifer Carroll MacNeill as Minister for Health. Opposition parties criticised the fact that just 3 out the 15 Ministers are women, with Social Democrats TD Jennifer Whitmore calling it a “cosy boys’ club.” Elsewhere, Aontú leader Peadar Tóibín called it an “east coast Government,” referencing the fact that there is just one representative from the north-west of the country.

Housing completions fall in 2024 as Government fails to meet targets
A total of 30,330 new homes were built in 2024, a decrease of 6.7% on 2023, according to figures from the Central Statistics Office (CSO). Apartment completions were down 24% compared to 2023. Over half (53.4%) of completions in 2024 were part of housing schemes, which was the only dwelling type to see an increase in output over the course of the year. The figure of 30,330 homes built last year also means the Government missed its target of building 33,000 homes as set out under its Housing for All plan. RTÉ News reports that in July, then-Taoiseach Simon Harris said “we will exceed our housing targets with almost 40,000 homes built,” and former Minister for Housing Darragh O’Brien told the Dáil in October: “I still confidently predict – the Deputy [Eoin Ó Broin TD] and his colleagues in Sinn Féin will be disappointed – that it will be the high 30,000s to low 40,000s this year.”

What we’re reading

Following chaos in the Dáil, Suzanne Breen asks what the new Irish government means for NI
Writing in the Belfast Telegraph this week, Suzanne Breen provides a thorough analysis of the the recent political developments in the Dáil and muses on the potential impact the new administration under Taoiseach Micheál Martin will have on NI. Whilst acknowledging Stormont’s own two-year collapse, Breen describes the “chaotic scenes” witnessed during Wednesday’s adjournment of proceedings a “first-class farce”. Casting ahead to consider what the new administration might mean for NI, she observes that Republicans will likely be disappointed given the combination of Harris and Martin, who she describes as “one of unionism’s favourite taoisigh”, will be unlikely to be pushing for an immediate progress on a border poll. The highly fractious relationship between Micheál Martin and Sinn Féin’s leader Mary Lou McDonald is also something to note and how that might play into the government’s dealings with SF here. In sum, Breen observes that the incoming administration’s Programme for Government shows “a commitment to invest in Northern Ireland, but it is weak as water on the political approach to unity”. She adds: “Building relations with a Trump White House, and securing that US multinationals in the Republic remain there, will be of far greater importance than Northern Ireland”.