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Infrastructure Levy would unblock wastewater crisis UNITED IN CALLING FOR THE LEVY TO END THE HOUSING DEVELOPMENT MORATORIA AFFECTING MANY TOWNS… CONSTRUCTION, HOUSING, MANUFACTURING AND BUSINESS SECTOR GROUPS HAVE
Additional funding for water infrastructure in the Draft Budget for Northern Ireland falls far short of what is needed to unlock housing development, according to the Wastewater Infrastructure Group. The Group represents a partnership between the Construction Employers Federation (CEF), Chartered Institute of Housing, NI Federation of Housing Associations (NIFHA), Manufacturing NI and NI Chamber. It is calling for an Infrastructure Levy of £1.25 per household per week, or £65 per annum, to supplement the 5% increase in household regional rates proposed in the Draft Budget. Independent analysis commissioned jointly by NI Chamber, CEF and NIFHA with Grant Thornton and Turley last year, together with the findings of the NI Fiscal Council, point to a £2bn funding gap in capital infrastructure for wastewater. The shortfall is preventing 6,150 homes from being built over the next three years, resulting in a loss of 2,530 jobs from the construction sector and an estimated £271.4m of gross value for the Northern Ireland economy. With the additional funding proposed in the draft budget, the Group estimates a funding gap of £1.36bn for 2026-2030 and £1.29bn for the next Price Control period. Introducing the Infrastructure Levy
would create a long-term sustainable multiyear investment model for NI Water and enable stalled housing, industrial and regeneration projects to proceed. A Group spokesperson said, “The Draft Budget rightly identifies wastewater as a strategic priority, but it does not close the funding gap that is blocking new homes and business development across Northern Ireland. “A modest, progressive levy of £1.25 a week per average household remains the most practical, affordable and fair way to unlock essential investment, support economic growth and protect our environment. “Under the Group’s proposal, households on benefits and housing association tenants would be exempt, while contributions would scale with property value - ensuring the levy is fair, progressive and affordable. “For example, a house in less affluent parts of Belfast with a market value of £109,000 and a rates bill of £422 would face a levy of £23 a year or approximately 44p per week whilst those with larger homes valued above £400,000 in North Down with a rates bill of £3,815, would pay more – a levy of £204 a year or approximately £3.90 per week. “The Draft Budget makes clear that the Executive cannot meet wastewater needs from existing capital envelopes.
Our proposal sets out a solution via a progressive investment model which protects the most vulnerable households. For around a pound a week, Northern Ireland could better protect the environment, unlock housing, support inward investment, protect jobs and end the development moratoria affecting dozens of towns.” The Group argues that wastewater capacity has now become one of the most binding constraints on Northern Ireland’s economic potential, hitting homebuilding, manufacturing expansion and town centre regeneration. Without an agreed innovative, long-term funding model this year, these constraints will continue into the next decade.
“For around a pound a week, Northern Ireland could better protect the environment, unlock housing, support inward investment, protect jobs and end the development moratoria affecting dozens of towns.”
Contact CEF for further information: T: +44 (0)28 9087 7143 E: mail@cefni.co.uk www.cefni.co.uk WANT TO KNOW MORE?
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