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20/04/2009
Chancellor's Savings Could Cost Stormont £600m
The Stormont Assembly could face a £600m cut in central funding under the 2009 Budget, an Ulster Unionist MLA has warned.
Deputy Party Leader Danny Kennedy said further financial cuts from Westminster are on the way for the Northern Ireland devolved administration.
"The Chancellor, Alistair Darling, has let it be known that he will be looking not only for £5bn of efficiency savings in 2009/2010 but that he will also be looking for additional efficiency savings of £10bn in the period beginning 2011-2012," said Mr Kennedy.
He said the Treasury's move "effectively trebles" the efficiency savings already announced to £15bn.
Mr Kennedy said this would have potentially serious consequences not only for Stormont but for all the devolved administrations.
"If £5bn efficiency savings resulted in Stormont losing £180m to £200m, then this latest news has the potential to lop £600m off Stormont's block grant from Westminster over the three year period of the comprehensive spending review," he said.
"This will have a serious impact on the Finance Minister's budgets and it indicates that his position up to now of refusing to revise his budget and reprioritise the programme for government is now completely unsustainable," added the assemblyman.
Mr Darling will unveil the Budget on Wednesday, detailing a much-mooted £15bn spending cut.
It is expected that a £2bn plan to help the unemployed will also be announced by the Chancellor, who is unlikely to raise taxes.
(PR/JM)
Deputy Party Leader Danny Kennedy said further financial cuts from Westminster are on the way for the Northern Ireland devolved administration.
"The Chancellor, Alistair Darling, has let it be known that he will be looking not only for £5bn of efficiency savings in 2009/2010 but that he will also be looking for additional efficiency savings of £10bn in the period beginning 2011-2012," said Mr Kennedy.
He said the Treasury's move "effectively trebles" the efficiency savings already announced to £15bn.
Mr Kennedy said this would have potentially serious consequences not only for Stormont but for all the devolved administrations.
"If £5bn efficiency savings resulted in Stormont losing £180m to £200m, then this latest news has the potential to lop £600m off Stormont's block grant from Westminster over the three year period of the comprehensive spending review," he said.
"This will have a serious impact on the Finance Minister's budgets and it indicates that his position up to now of refusing to revise his budget and reprioritise the programme for government is now completely unsustainable," added the assemblyman.
Mr Darling will unveil the Budget on Wednesday, detailing a much-mooted £15bn spending cut.
It is expected that a £2bn plan to help the unemployed will also be announced by the Chancellor, who is unlikely to raise taxes.
(PR/JM)
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