Dodds Responds to Darling Budget

The past few days have seen various politicians bandy about figures suggesting how much the budget to NI would be cut they ranged from £160m to £450m to £600m. In the end the Department of Finance and Personnel have worked it out as £123m for 2010/2011. Whilst this is better news than expected it will still mean that there will be cuts in services and budgets for departments. These cuts will become clear in the June Monitoring Round. Expect a lot more political reaction and economic analysis in the media over the days to come. Below is the reaction of our Finance Minister to the Budget.

DODDS RESPONDS TO BETTER THAN FEARED BUDGET OUTCOME

While welcoming some aspects of the budget Finance Minister, Nigel Dodds has expressed his disappointment with the Chancellor’s announcement today that existing funding available to the Northern Ireland Executive would be reduced by £123million in 2010-11. However the Chancellor has highlighted some offsetting allocations.

Responding to Alistair Darling’s Budget Report to Parliament, Mr Dodds said this afternoon: “While it is disappointing that Northern Ireland has not been allowed to retain the savings from additional efficiencies, I note that the net impact is less than had been feared as a result of the £50.3million of additional funding for the Executive in the current financial year and £66.1million in 2010-11.

Turning to the UK wide measures announced today the Minister said: “I welcome the decision to extend the stamp duty holiday which will hopefully be of greater benefit going forward as the property market recovers. In addition, the increase to this year’s Winter Fuel Payment of £100 for those aged over 80 and £50 for those aged over 60, as well as the enhancements to the Child Tax Credit will be of real benefit to the most vulnerable in our society.

"Although I remain concerned that the Chancellor’s economic growth projections are overoptimistic, the doubling in capital allowances will provide additional support for local business to prepare for the inevitable economic recovery. I would also urge local business to take advantage of the UK wide Strategic Investment Fund.”

"Although the impact of the additional efficiency savings for Northern Ireland for 2011-12 and beyond will only become clear at the next UK Spending Review, the reality is that we are entering a period of lower growth public spending of 0.7% per annum at the UK level, which will require careful consideration of administrative structures and the public service delivery chain in Northern Ireland.”

“However, for the short-term we must continue to prioritise frontline services and focus attention on maximising savings from back-office functions and potentially inefficient institutional structures. ”

Summing up the Budget Report, the Minister recognised that the financial position faced by the Chancellor constrained his ability to provide further support to the economy.

He said: "As we move into 2009-10 the Executive will need to have an even greater focus on ensuring that every pound spent on public services delivers maximum value for money so that we can continue to provide a better quality of life for all the people of Northern Ireland.

"The outworking of today’s announcements in respect of the 2009-10 financial year will be incorporated into the Executive’s decisions as regards the forthcoming June Monitoring Round in line with local needs and priorities”.