Oral statement NI Assembly - Communities Minister Gordon Lyons MLA -Initial Budget allocations 2025-26

Date published: 2 June 2025

The work that my department does is transformational. It impacts people across Northern Ireland and delivers positive outcomes, often for those in greatest need.

Housing, the arts, culture, sport, benefits and pensions, child support, historic environment, urban regeneration, local government, social inclusion, libraries and museums touch the lives of almost everyone in Northern Ireland.

I know there is so much more to be done. I want to do more; but I am operating in a continually constrained budgetary environment, however I am determined to use the money that has been secured to best effect.

Pressures will of course remain right across my department, and I have no doubt that today members will set out all the areas in which they would like me to spend more. However, I must operate within the budget that I have been allocated and that is why this year, I am doing things differently.

Housing

Let me turn first to housing. I have made it clear that addressing homelessness and increasing the supply of housing is one of my top priorities.

That's why I have delivered a Housing Supply Strategy, launched an affordable rent scheme, allocated Pound 10m for "Loan to Acquire Move on accommodation, secured cross party consensus on the need for borrowing powers for the NIHE, removed intimidation points to level the playing field, and ensured housing executive reserves were used to buy homes to address pressures in temporary accommodation, which will realise savings of up to Pound 75m over the next 7 years.

But there is more to do.

Therefore, I am pleased to announce today that I am proposing an additional allocation to Homelessness and the Supporting People Programme of Pound 3.7m above the 2024-25 Budget position.

In addition, I am proposing Pound 2.8m capital to the New Foundation Project to move forward with securing 110 units of accommodation to support Young People Leaving care.

This is not just about providing shelter; it is about restoring dignity and hope to those who have fallen on hard times and to prevent those people falling into hardship.

However, to properly tackle this issue, we need more homes.

Social housing is crucial, as it provides affordable, stable housing options for those who might otherwise struggle in the private rental market. The inclusion of housing as one of the key pillars of the Programme for Government shows the widespread support to deliver affordable, sustainable and quality housing.

My proposed budget of Pound 63.0m will facilitate the start of approximately 900 - 1000 new build social homes. This is on top of the Pound 105m for pre-commitments to housebuilding from last year. But this is not enough. This assembly last year declared a housing crisis in Northern Ireland, yet we are left in a position to fund less than 50% of the Programme for Government housing target.

Last year was even worse, with my budget allocation only allowing for 400 new starts, however, I am proud to say that by the end of the year, this had increased to 1,502.

We will put the same effort into driving us these figures this year as we did last year and will continue to make the case at every possible opportunity.

However, it is not enough to simply ask for more money. We need to do things differently. That's why I will be bringing proposals to the Executive shortly on how we can do more with the money we have to build more homes. I look forward to working with other Ministers, the NIHE and Housing Associations on this issue.

Increasing opportunity

Mr Speaker, I also want to increase opportunities and life chances for everyone in Northern Ireland. Far too many people, and indeed generations, are stuck in a cycle of welfare dependency.

This should be a cause of concern for us all and we should have a greater ambition for our people.

There are far too many economically inactive people who want to get into work but just need some help to do so.

I want their talents, their potential and their opportunities to be maximised.

Therefore, I am also pleased to announce today, that I will be investing in a new multi-million pound employment program that will support all age groups and tackle the barriers to economic activity.

I will be making an announcement to the Assembly on the details of this in due course and it will be one of the most extensive jobs programs in recent times.

We also need to continue to support those who need it most. I am therefore proposing to maintain the Discretionary Support Grant Budget at Pound 25.5m but we must ensure this fund is not abused and goes to those who are genuinely in need.

Therefore, I will be introducing reforms to protect this money from fraud and therefore protect those who really need it.

ALBs

My Department's Arm's Length Bodies play a vital role in helping us to deliver our objectives, and despite the constrained financial position facing my Department in 2025-26, I am proposing that my Department's Arm's Length Bodies will receive an additional Pound 3.7m General Allocation in 2025-26, above their 2024-25 funding level.

Furthermore, I am proposing an additional allocation to National Museums NI and Libraries NI to maintain operational stability and ensure continued public access to these key cultural and educational institutions. This proposed allocation will not fund all pressures faced but will ease service delivery pressures in 2025-26.

However, year-on-year budget cuts have placed increasing pressure on these institutions, threatening their ability to serve the public effectively. To reverse this trend and secure the future of our libraries, I am proposing Capital funding of over Pound 1m: Pound 750k towards the replacement of Enniskillen Library, without which major Health and Safety concerns present a very high risk of potential closure of the facility, and I am also allocating Pound 200k to Newtownards Library.

I am also proposing capital funding to NI Museum Council of Pound 30k for the Museum Collection Fund and Pound 80k for small capital grants. Grants to local museums for the acquisition of specimens to add to their collection or to address urgent needs in storage, conservation, and rationalisation of collections will be welcome news for the sector.

I also want to ensure that National Museums get back to a stable operating base after many years of constrained funding, therefore I am proposing an opening resource budget of Pound 20m alongside Pound 3m of capital. This capital funding will allow investment of nearly Pound 1.5m in the Ulster Museum store and in exhibit buildings and gallery works.

Turning to the Arts Council, I am proposing capital funding to for several programmes, including Pound 750k for musical instruments, so that everyone has the chance to learn, to play, and to perform, connecting more people with the arts.

It has helped individuals, bands, professional and nonprofessional groups, primary schools, creative arts centres, and talent development organisations.

I said I wanted to get more people involved in the arts and this year we were able to help 4,500 do just that and I want to see that continue.

I also said that I would ensure a better balance of arts funding to every community and corner of Northern Ireland, therefore I am also pleased to announce a Pound 500k small capital grants programme to support local arts venues and creative spaces as well as funding for Artists in Residence to each borough and district council. 

VCS

I also want to acknowledge the vital role provided by the Voluntary and Community Sector. These organisations create an enormously important social value, through community engagement, job creation, and overall improvement in people's quality of life. Given the rising cost pressures facing this sector I am proposing that the Voluntary and Community Sector funding increases by Pound 2.8m on the Department's 2024-25 funding level. I understand that this funding offers a lifeline, but not a solution and I understand that the sector continues to operate under immense strain.

Capital funding of over Pound 4m will be allocated to Neighbourhood Renewal to support community and voluntary sector partners. It will deliver funding for projects that support communities. And I am delighted to announce support for several projects in including a new youth hub for Ardoyne Youth Enterprise, a new build community centre for a local community organisation Glencairn Community Partnership and the redevelopment of Bloomfield Community Association's centre in East Belfast.

I am also pleased to be able to support Ballee Community Group in Ballymena to provide an outdoor canopy to cover a children's play area.

Capital investment in our community infrastructure is vitally important. Their facilities are the heartbeat of every community in Northern Ireland. I recognise that and as a result, I will be making a significant announcement on the 26th of June for a new Community Infrastructure grant that will be transformational to the voluntary and community sector.

Regeneration

In addition to the capital funding I have already highlighted, I am also initiating and funding a wide range of regeneration projects.

Some of the larger projects include the Glengormley Public Realm project which will see a total contribution of over Pound 2.5m as part of a wider funding package.

The Pound 3m Shankill Gateway public realm scheme will also begin this summer and take approximately 12 months to complete. This scheme will bring much needed improvements and enhance the linkage of the Shankill community to Belfast City Centre.

In tandem, the Pound 5m Public Realm works adjacent to the city walls will deliver on improvements to several streets in the historic Londonderry City Centre.

I am also pleased to announce I will be investing Pound 1.6m this year in essential conservation works at Carrickfergus Castle. A significant part of this funding will be directed at enhancing the visitor experience of and improving access to and within the Castle. These will realise the Castle's status as a world-class attraction, bringing more visitors to Carrickfergus and establishing it as the Gateway to the Causeway Coastal Route. We must protect our heritage assets, and I will do everything I can to ensure we do.

Finally on regeneration, I am delighted to confirm that I will be making a major announcement tomorrow at 2:30pm on the development of Queens Parade in Bangor.

Sport

Moving on to sport - we know it plays a vital role in communities and is critically important to our young people.

Provision of places to play and train is one of the most frequent concerns that I get lobbied about. I know the impact that lack of facilities is having and I am determined to act on it.

One of the ways we can do that is to ensure we are maximising the use of the school's estate. To that end, the Your School Your Club programme has been effective in making sure improvements are made to school sporting infrastructure that can be of benefit to the school and the local community.

Last year I invested Pound 500k in this programme. It has been transformational but so much more can be done.

Therefore, I am pleased to announce that this year, I am proposing that the budget will be Pound 3m.

Working alongside my colleague Paul Givan, our ambition is for every post-primary school in Northern Ireland to have a 3G pitch and sporting facilities which can benefit local communities.

Building on last year's investment, I am making additional capital funding available to help improve safety at motorsport events; this is crucial in helping to ensure that racing can be as safe as possible.

Welfare

Finally Mr Speaker, we must also restore confidence in a welfare system that is fair, transparent, and focused on the right people. My Department's latest published estimates for 2023 show a loss of Pound 240.3m due to customer fraud, customer error and official error. At a time of great uncertainty following many announcements from the Labour Government, we must sure every pound we spend is spent well and goes to those who need it most.

Conclusion

Many of my departments' stakeholders are feeling the pinch. Whether that's from the general cost of living increase, rising prices, increased taxes or inflation - now is the time to cut our cloth and ensure our budgets are spent well.

This also applies to me to me and so my final announcement Mr Speaker, is to confirm to this house, that as of this year, I will be reviewing all vacancies which sit within the Department for Communities baseline. Over 1000 of these posts have not been filled after consecutive bids in budget rounds not being met. I have decided to lead the way on this drive for efficiency. As the largest Department, it is right I show leadership and make this move and I look forward to engaging with trade unions and Departmental officials in due course.

I understand that there will be concerns and questions about the proposed allocations. I want to emphasise that these decisions were not made lightly.

My commitment to this house and to the communities, citizens and organisations my Department supports is to improve the lives of people in Northern Ireland, to maximise impact with limited resources and to ensure that every pound spent is a step towards a better future for the people of Northern Ireland.

I commend this statement to the house.