CIOB NEWS
SHIFTING TOWARD A MULTI-YEAR BUDGETARY FRAMEWORK IMPROVES PROSPECTS FOR THE REGION, SAYS CIOB POLICY AND PUBLIC AFFAIRS MANAGER JOSEPH KILROY... Building a certain future for NI
Joseph Kilroy.
For decades, the construction sector in Northern Ireland has been forced to operate in a state of perpetual volatility. Annual budget cycles, sudden funding shifts and a lack of transparency have created a stop-start culture that discourages long-term investment and drains the sector of its most vital resource: talent. However, the proposed NI Draft Budget 2026–2030 represents a potential turning point. By shifting toward a multi-year budgetary framework, the Executive is finally offering the pipeline of certainty that our industry has long campaigned for. CIOB fundamentally agrees with the move to a three-year resource and four-year capital DEL cycle. For our members - particularly small and medium enterprises - this is not just an accounting change, it’s a strategic lifeline. Stability allows a firm to plan its recruitment, invest in modern methods of construction, and commit to R&D with the confidence its investments won’t be rendered obsolete by an 11th-hour budget cut. While the Minister has been clear about the ‘extremely constrained’ financial envelope, the strategic value of long-term planning cannot be overstated. A predictable pipeline allows the sector to build capacity ahead of demand, ensuring that when capital is released, the industry is ready to deliver efficiently and sustainably. If NI is to deliver on its Programme for Government and its ambitious housing targets, we must first address the hidden infrastructure crises that are currently stalling development. CIOB identifies three critical pillars that must be prioritised in the 2026-2030 period: • Wastewater and utility capacity: It is impossible to build homes without a functioning utility network. Current independent analysis suggests a staggering £2bn capital funding gap in NI’s wastewater infrastructure. This is no
longer just a utility concern, it is a direct roadblock to economic growth, with over 6,000 homes currently trapped behind development moratoria. Without prioritising NI Water’s capacity, any capital allocated to housing will remain paralysed. • Housing as an economic catalyst: Housing must be viewed as the bedrock of our economic wellbeing. We urge the Executive to move beyond inflationary demand-side measures and focus on upstream interventions. This means activating land and providing the enabling infrastructure - roads, power and water - that allows both social and private housing
apprenticeship pathways. We cannot afford to lose another generation of talent to emigration. By moving toward a unified, social-value- led service, the Executive can achieve better economies of scale. Furthermore, a shift from reactive emergency repairs to planned preventative maintenance for public assets like schools and hospitals will significantly reduce long-term costs and extend the lifecycle of our built environment. The budget must also look beyond the Block Grant. Financial transactions capital is a major under-utilised tool that could be used in revolving investment models. We also support the exploration of modest, progressive infrastructure levies and land value capture mechanisms. Alongside the final budget, the Executive must publish a detailed NI infrastructure pipeline. Knowing exactly when a project in Derry, Belfast or Fermanagh will go to tender is what allows a local contractor to hire an apprentice today.
projects to break ground. • The skills ecosystem:
We cannot build the future with a shrinking workforce. With nearly 10% of 18-24 year olds in Northern Ireland currently disengaged from education or employment, we face a generational choice. We must align this social need with our economic demand by strengthening construction-specific careers advice and
Joseph Kilroy, Policy and Public Affairs Manager Ireland, Scotland and Wales T: +353 (0)1 513 8950 - M: +353 (0)8711 94 475 - E: jkilroy@ciob.org - www.ciob.org Want to know more?
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