Budget must provide further support for workers and families – O’Dowd

Date published: 3 November 2025

Speaking ahead of Westminster’s Autumn Budget which will take place later this month on Wednesday 26 November, Minister O’Dowd commented: “Economic growth and improved public services cannot be achieved without meaningful investment and support for working families.

“Ahead of the Autumn Budget I have urged the Treasury to consider enhancements to the Tax-Free Childcare scheme. Affordable childcare is essential to improving labour market participation and driving economic growth. That is why I am specifically calling for the support rate to be increased from 20% to 30% and for the annual cap per child of £2,000 to be reviewed. I have also asked that the Autumn Budget be used to reverse the two Child Benefit Cap – recognising the hardship this is placing on families.  

“As the cost-of-living crisis continues, I have made it clear to the Chief Secretary to the Treasury that further austerity measures must not be taken which place an unfair burden on people, businesses or public services.”

Turning to Local Growth funding Minister O’Dowd added: “Local Growth Funding has the potential to support people into employment, education, and training, while also helping local businesses – all of which are essential for driving economic growth.

“However, the significant reduction in the Resource budget for this funding will severely impact the community and voluntary sector’s ability to deliver vital services, particularly for those furthest from the labour market. The Assembly has sent a clear and united message that we stand with the Community and Voluntary sector and that there must be an urgent change in approach. 

“I have pressed the Chief Secretary to work with the Ministry of Housing, Communities and Local Government to reconsider the funding profile, which is currently heavily weighted towards Capital. Without a change in approach the British Government is putting frontline jobs, vital services and projects and programmes that support those furthest removed from the labour market getting back into work at risk.”

Minister O’Dowd has also called for a change in the VAT rate to support the hospitality sector. He continued: “Concerns around the disparity in VAT have been consistently raised with Westminster. I am calling for a reduction in VAT to ensure our hospitality sector can compete on a level playing field in the all-Ireland economy.”