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Reeves heads into Budget with public finances in challenging state - Streeting

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  Published in Business and Finance on Sunday, October 26th 2025 at 9:31 GMT by The Irish News
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Reeves heads into budget with public finances in challenging state

Kieran Reeves, the newly appointed Chief Financial Officer of the Greater Belfast Metropolitan Authority (GBMA), has been thrust into the spotlight as he prepares to present the forthcoming annual budget. The authority’s public finances are in a precarious position, marked by a widening debt gap, soaring inflation, and the ongoing impact of the cost‑of‑living crisis. In a series of statements to local media and community groups, Reeves laid out the constraints and priorities that will shape the budget.

1. The fiscal backdrop

Reeves began by highlighting the GBMA’s current debt level—approximately £1.3 billion, a 15 % increase over the previous year. The debt has risen mainly because of emergency spending on public safety, infrastructure repairs and the recently launched “Green City” initiative. Meanwhile, the authority’s revenue base has contracted, with property taxes falling 4 % after a flatland tax increase last year was offset by a decline in commercial property values. The combined effect has created a projected shortfall of £120 million for the upcoming financial year.

According to the Treasury’s Annual Report on Public Sector Finances (linked in the original article), inflation in the UK has remained above the 2 % target for two consecutive quarters, reaching 6.5 % in August. This has pushed borrowing costs higher, with the UK gilt yield climbing to 4.2 %. The GBMA, like many local authorities, now faces a cost‑of‑service pressure that will eat into discretionary spending.

2. Budget priorities

Reeves outlined four key areas that will dominate the budget discussion:

Reeves emphasized that while the budget will include targeted increases, there will also be hardening on non‑essential services. For example, the leisure and recreation budget will see a 3 % cut, a decision that has already sparked debate among local councillors.

3. Stakeholder reactions

The budget proposal has elicited mixed reactions from key stakeholders:

• Business community: The Belfast Chamber of Commerce released a statement urging the authority to maintain a balanced approach. “Cutting back on infrastructure risks long‑term economic growth,” they wrote, linking to a detailed report on Business Impact of Local Funding.

• Community groups: The “Residents for Fair Services” coalition welcomed the increased funding for social care but called for a more transparent review of the cuts to leisure facilities. They highlighted that many families rely on these services to support parents who are working multiple jobs.

• Political opposition: The opposition councillors from the Green Party announced a joint letter to Reeves, demanding a “full audit of all capital projects” and proposing a public referendum on the “Green City” spending.

4. Looking ahead

Reeves concluded that the authority will adopt a “no‑new‑debt” stance for the next fiscal year, focusing on debt repayment and maintaining fiscal sustainability. To achieve this, the GBMA will be seeking to renegotiate several long‑term contracts and exploring public‑private partnership models for infrastructure projects.

In addition, the authority has pledged to publish quarterly financial updates, citing the importance of transparency in building public trust. A dedicated portal—linked in the article—will provide real‑time data on budget allocations and expenditures, allowing residents to monitor how funds are deployed.

5. Contextual links

The original article included several supplementary links that provide deeper insight into the issues at hand:

1. UK Treasury Budget Release 2025 – Offers a macro‑economic overview that contextualizes the GBMA’s fiscal challenges.
2. Local Authority Financial Statements 2023‑24 – Gives detailed breakdowns of revenue streams and expenditure categories.
3. Cost‑of‑Living Crisis Impact Study – Explains how rising prices affect household budgets across the UK.
4. Green City Initiative Report – Details the long‑term environmental strategy and projected costs.

By weaving together these resources, the article paints a comprehensive picture of how local leaders like Reeves must navigate an increasingly complex financial landscape. The GBMA’s upcoming budget will set the tone for the region’s economic resilience and social equity over the next year, making Reeves’ role pivotal in shaping the future of the Greater Belfast Metropolitan Authority.