Wilson: Pre-Election Budget leaves too many unanswered questions on the future of UK public finances

Finance Minister Sammy Wilson has responded to the Chancellor of the Exchequer’s Budget 2010 statement to Parliament earlier today.

Mr Wilson welcomed some of the measures in the Budget 2010 Report and said: "I welcome the additional £12.1million in funding to the Executive in 2010-11, which will be allocated in line with the needs and priorities of the people of Northern Ireland. The decision to increase fuel duty on a phased basis will provide some limited respite for motorists who have faced increased costs as a result of the 70% increase in the price of crude oil over the past year. In addition, the one year extension to the additional payment to pensioner households alongside the Winter Fuel Payment and the extension in stamp duty relief for first-time buyers are also both welcome.

"There is also good news for the local construction sector from the confirmation that the Government is preparing to seek state aid approval to extend the length of the Aggregates Levy Credit Scheme which recognises the distinct circumstances facing local quarrying and firms."

Looking to the public spending environment in the coming years, the Minister registered his concern at the lack of detail provided by the Government in respect of the position for 2011-12 and beyond which is restricting the ability of the Executive to effectively plan for the future: "It was disappointing that more information was not provided by the Chancellor of the Exchequer in respect of how he intends to reduce the level of public sector borrowing in the coming years. Although this was in part understandable due to the lack of detail provided by the other main national parties, it is difficult to judge whether the less aggressive approach he proposes is correct, without a full explanation of how he intends to constrain public spending.

"I welcome the lower than expected levels of borrowing in the current financial year, although this still means that some very difficult decisions will need to be taken to reduce the level of borrowing from 11.8% of GDP in 2009-10. In addition, whilst I recognise that Northern Ireland will not be immune from the effects of these decisions, it is critical that more information is provided at an early stage to allow the Executive to develop our own spending plans for the coming years, as part of the local Budget process. Therefore, following the General Election, my priority will be to intensify the ongoing engagement with Treasury Ministers to ensure that Northern Ireland achieves the best possible outcome from the 2010 UK Spending Review."

In concluding, Mr Wilson said: "Although the Chancellor of the Exchequer was realistic enough about the state of the public finances not to engage in a pre-election giveaway, it remains the case that many of the measures he announced today could be reversed by a new Government, depending on the outcome of the forthcoming General Election."

Notes to editors:

1. Details of the Government’s Budget Report are available on the HM Treasury website.
2. Media enquiries to DFP Communications Office on 028 9052 7374 or 028 9052 7375. Out of office hours please contact the Duty Press Officer via pager number 07699 715 440 and your call will be returned.