Forty per cent cuts?

Published Sunday, 04 July 2010
Comments
Toggle font size
Print

What would life be like here if the Chancellor were to cut public spending in many Whitehall departments by forty per cent?

Before I answer that I must point out that the decrease would be less here for the following reason. The Barnett formula, which determines the impact of spending changes, would limit the damage to Stormont's finances.

That said this measure of protection would be of relatively little comfort if the forty per cent axe were to fall across the water. A cut on this scale would decimate public services here.

Massive job losses not just inside the public sector but on those companies and consultancies which hugely depend on a flow of contracts from Stormont. Emigration would begin in earnest. But there's no point in listing all the consequences because in truth nothing would be left unaffected.

So can we take some comfort from the revelation by the Secretary of State for Transport Philip Hammond that it's unlikely that Westminster will go that far? Not very much in my opinion.

The twenty-five per cent reduction already mooted will be very bleak for us. We'll know just how bad in the Autumn when the review of public spending is complete.

In the meantime it would be helpful to know whether Stormont is going to impose the already announced £128 million cut this year or next and on what.

It would also be useful if Stormont departments here followed the lead of the counterparts in Whitehall and worked where they plan to wield the axe once the full extent of the cuts are published in October.

© UTV News
Views: 1,217
Comments Comments
0 Comments
No comments. Be the first to comment.
POST A COMMENT:
Name:  
Email address*:    
Location:  
Validation:
House Rules:  
Your Comment:  
[All comments are moderated and will not appear immediately. Your name, location and comment will be displayed on this page if your post passes moderation.]
Jamie Delargy
Jamie Delargy

Jamie Delargy is UTV's Business Editor with a keen eye on local and global economic issues.

A Cambridge Philosophy graduate, Jamie had a brief spell in teaching before launching his career in journalism. In his spare time he enjoys a spot of tennis and is an avid reader.

His favourite saying is "Power corrupts. Absolute power corrupts absolutely."

SEARCH BLOGS
By Date:
<May 2012
MonTueWedThuFriSatSun
30123456
78910111213
14151617181920
21222324252627
28293031123
45678910
By Blogger:
By Theme: