The “Funding and Delivery of Public Services: Follow Up” report (HC477) from the Northern Ireland Affairs Committee contains several key points relevant to the building industry:

Infrastructure and Housing Crisis

• Northern Ireland faces severe infrastructure deficits, particularly in housing with over 47,000 households on social housing waiting lists
• The maintenance backlog for schools is estimated at £450 million (likely much higher)
• The police estate has a maintenance backlog of approximately £40 million
• NI Water’s infrastructure has been historically underfunded, limiting housing and business development

Funding Challenges

• Current funding models provide mostly short-term, one-off packages that don’t allow for strategic infrastructure planning
• Stop-start government and unpredictable funding have hindered transformation and long-term projects
• The report indicates Northern Ireland is funded at 124% of England’s per capita rate, but there are debates about whether this is sufficient

Reform Recommendations

• The report calls for stable, multi-year funding to enable better infrastructure planning
• £235 million has been ring-fenced for public sector transformation, though some has been diverted to day-to-day spending
• A Public Sector Transformation Board has been established that could impact infrastructure spending

Revenue and Investment Potential

• The report discusses potential for greater tax devolution to fund infrastructure improvements
• Northern Ireland currently has limited revenue-raising powers, restricting its ability to fund capital projects
• Transitioning to charging for services like water (as in the rest of the UK) could generate revenue for infrastructure

From a building industry perspective, this report signals both challenges and potential opportunities, with recommendations that could – if implemented – create a more stable environment for infrastructure investment and development in Northern Ireland.