Wilson: Pre-Budget Report brings little change for Northern Ireland

The Finance Minister, Sammy Wilson MP, MLA has responded to the Chancellor of the Exchequer’s 2009 Pre-Budget Report statement earlier today. Commenting on the measures announced, Mr Wilson said this afternoon:

“Most of the measures in the Pre-Budget Report will have little impact on the people of Northern Ireland. Although some were disappointing, including the increase in National Insurance Contributions from 2011-12, it was largely inevitable that only a small number of significant announcements would be made at this time given the state of public finances and the proximity to the General Election. I will need to consider the detail of what has been proposed in terms of the implications for the people of Northern Ireland”

“It is welcome that there is not going to be a significant reduction in the Block Grant next year, as previously feared, with an additional £7.7million available to the Executive for 2010-11 as a consequence of the allocations made to Whitehall departments. Although there was a case for a continuation of some of the short term measures announced previously such as the Stamp Duty holiday, it is recognised that there is a need to reduce the level of borrowing which is projected to reach 12.6% of GDP this year”.

Referring to the confirmation of the plans for further efficiencies to be delivered by Whitehall departments the Minister indicated: “There will be understandable concern at the implications for local public services of the £12billion in efficiencies expected of Whitehall departments up to 2013-14. However, it is important to recognise that there remains a significant amount of uncertainty, particularly in terms of the extent to which efficiency savings will be directed back into services, with the final outcome for the Northern Ireland Executive to be confirmed at the conclusion of the next Spending Review.

"Although the constraints in public sector pay will also apply to Northern Ireland, a key issue for the Executive is whether we would wish to match the Whitehall efficiency targets and I will be taking forward some preparatory work with my Ministerial colleagues early next year.”

Summing up the Pre-Budget Report, the Minister highlighted that further measures would be needed in order to restore public finances at the UK level to a more sustainable position.

He said: “This will inevitably mean that we in Northern Ireland will also need to examine our approach to issues such as water charges for domestic customers as well as fundamental questions regarding which services should be provided by the Executive and how they can be most efficiently and effectively delivered”

Notes to editors:

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