NI to get £130m spending boost

Published Tuesday, 29 November 2011
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Finance Minister Sammy Wilson has welcomed the announcement of an additional £130m in capital for Northern Ireland over the next three years to invest in schools, roads and hospitals.

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    Finance Minister

The unexpected boost announced in Chancellor George Osborne's Autumn Statement also includes a further £8m for day-to-day spending.

Mr Wilson said: "Over the next three years our allocation from the increase in capital spending across the UK will be an extra £130m which of course is very welcome as we have taken the hit when we had a 40% reduction in our capital budget.

"The Executive will ensure the funding is allocated in a manner that will benefit the people of Northern Ireland.

"It is still in the early stages and I have not yet received details of the impact on our resource budget - however, I remain hopeful that this too will involve additions rather than reductions."

This unexpected gain while very welcome should not blind anyone to the fact that times will continue to be lean for years to come here.

UTV Business Editor Jamie Delargy

Public sector pay rises will be capped at 1% after the current wage freeze ends - a move which risks deepening the dispute with unions which will see mass walkouts by members on Wednesday.

Mr Osborne said the proposal was "tough", but fair to the taxpayers funding the increase.

"Many are helped by pay progression - the annual increases in salary grades that many people are entitled to, even when pay is frozen," he added.

"It is one of the reasons why public sector pay has risen at twice the rate of private sector pay over the last four years."

Hitting out at the freeze plans, the Irish Regional Secretary for Unite claimed low-paid workers were paying for Mr Osborne's "failing economic argument".

"Once again, low-paid public servants - after already suffering a two-year pay freeze while inflation is running at 5% - are being penalised for Osborne and the Con-Dems' disastrous economic policies," Jimmy Kelly said.

"Families too are to be heavily penalised, especially women with children being hit hardest with the freeze on Family Credits. Unite will oppose these measures."

Mr Osborne told MPs that such a restriction on pay rises will save more than £1bn by 2014-15.

The current two-year pay freeze will come to an end next spring for some workers and during 2013 for most public sector employees.

As around two million public sector workers across the UK prepare to take strike action on Wednesday, in a protest over pension cuts, the Chancellor warned action would have to be taken to protect the basic state pension in the long-term.

"Our generation has been warned the cost of providing decent state pensions is going to become more and more unaffordable unless we take further action," Mr Osborne said, outlining plans for the state pension age to rise from 66 to 67 in 2026.

He added that the decision would not affect anyone due to begin claiming their state pension within 14 years - saving taxpayers a "staggering" £59bn.

You are once again giving with one hand and taking with another. How are these projects going to be paid for? By hitting families and savers.

Shadow Chancellor Ed Balls

According to the Chancellor, a double-dip recession for the UK could be avoided - but it depended on the survival of the Eurozone.

Mr Osborne said that the Government would do "whatever it takes" to protect the country from the debt storm in Europe, while at the same time "building the foundations for growth".

But his shadow counterpart Ed Balls said the Chancellor's economic and fiscal strategy lay "in tatters" and urged Mr Osborne to offer new proposals to revive the economy.

"How much worse does it have to get?" he asked.

"How many more young people have to lose their jobs? How many more businesses have to go bankrupt?

"How many billions more in borrowing do we need to pay for failure before this Chancellor finally sees sense?"


Autumn Statement Key Points

  • Office for Budget Responsibility does not predict a recession, but has downgraded growth forecasts to 0.9% this year - down from the 1.7% predicted in March.
  • GDP to grow by 0.7% next year - down from March predictions of 2.5%
  • Recession "hard to avoid" if the rest of Europe is hit hard.
  • UK's economic bust was deeper than previously believed, meaning "our debt challenge is even greater than before".
  • Borrowing falling slower than forecast - to £127bn this year, to £120bn next year, to £100bn in 2013/14, £79bn in 2014/15, £53bn in 2015/16 and £24bn by 2016/17.
  • Public sector pay rises capped at 1% for two years after the current freeze on salaries ends.
  • Basic state pension will rise by £5.30 in April to £107.45 and pension credit will increase by £5.35.
  • Working-age benefits will be up-rated in line with September's 5.2% rate of inflation
  • £20bn available under a National Loan Guarantee scheme, which will use the use low interest rates the Government enjoys to reduce the levels small businesses can borrow at.
  • The OBR forecast that unemployment will rise to 8.7% next year before falling to 6.2%.
  • January's planned 3p rise in fuel duty was cancelled and August's increase would be limited to 3p.
© UTV News
Comments Comments
10 Comments
colette buttle in co down wrote (175 days ago):
Pity some of this money couldn't have been used to buy the land needed for Bangor Central Intergrated Primary School needed to built a MUCH needed new school.
Carry on Politics in Belfast wrote (176 days ago):
Lets see how they squander this.
Brian in Belfast wrote (177 days ago):
One day we're being told there's no money and then the next there's £134 million. Where did that come from?
Billy in Belfast wrote (177 days ago):
Whilst the Media & Political coverage of this story was inaccurate where I commented earlier. It was refreshing watching Paul on UTV Tonight putting Tough Questions to the Union Leaders, as well as that Bumbling Eejit we call a Finance Minister. Sammy Wilson couldn’t care less for the Strikes, Government Monies coming from the U.K. which we will pay for, for years to come. No Our Finance Minister is still very Comfortable Double Jobbing all the way to the Bank, like so many in his Party. Wake Up Northern Ireland it’s time to kick this Assembly Out so we can have a Brighter and Shared Future.
tomc in Belfast wrote (177 days ago):
Back in the 80's Thatcher had to break the stronghold of unions in order to make growth a reality. Then in comes New Labour, it was spend spend spen, during which private finance became common place for the funding of state projects, and that's now costing us a fortune. Now we have the bill and ben government, who think that by trying to do a Maggie, it'll all come good. Thing is the fat was cut off long ago, so every cut feels like a kick in the teeth. Sort out tax loopholes and sort the benefits system, before you stick your paw in front of the common man or woman and ask them to anti up again! I left the private sector and took a job in the public sector, because I thought I could help make a difference. I took a 40% pay cut to do that, which is now about 30% of a difference. I should never have done what I thought was the morally responsible thing to do. I should have stayed with greed is good, and took my bonus every year instead......it wouldn't matter what monkeys were in government, as none of them have the stomach to sort this mess properly.
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