CHANCELLOR Philip Hammond unveiled plans to bolster the Northern Ireland Executive’s budget by £660million, as a result of the Budget.
Secretary of State James Brokenshire said the Executive’s block grant will increase in real terms over the Spending Review Period between 2015 and 2020.
He added that the boost will give a Northern Ireland Executive greater spending power to bolster Northern Ireland's productivity and increase growth.
£540million has been earmarked for infrastructure over the next four years, while day-to-day spending will increase by £120million – a reduction in real terms when inflation is taken into account.
The figure of £660million was also dwarfed by a £1.2billion package announced for Wales.
Speaking after the Budget, the DUP’s Treasury Spokesman in Parliament, Sammy Wilson, said: “This budget reinforces the relationship which we now have with the Government.
"We are pleased that our influence has not just delivered for Northern Ireland but also good policies for the whole United Kingdom.”
'A bad joke'
However in the wake of the DUP’s £1billion confidence and supply deal to bolster a minority Conservative Government, some felt Northern Ireland had been short-changed.
Steven Agnew, leader of the Green Party in Northern Ireland, said the DUP had ‘sold it’s soul for nothing’ and urged the DUP to vote against the Budget.
“The DUP has had to line up behind the Tory government on vote after vote ever since signing up to the confidence and supply deal in June, and now it turns out that it has all been for nothing,” said Mr Agnew.
“Indeed, far from the promised billion pound windfall, we are now looking at a real-term cut.
“The DUP sold its soul and at £1billion some might have thought that was a fair price.”
Sinn Féin MLA Máirtín Ó Muilleoir meanwhile described the Budget as 'a bad joke'.
The former Lord Mayor of Belfast also criticised much of the increased infrastructure spending taking the form of Financial Transactions Capital (FTC) money.
FTC can be only deployed as a loan to – or equity investment in – a capital project delivered by a private sector entity.
Tory & DUP partners happy to put up 2 £7bn into refurbishing Palace of Westminster but in 6 Cos no economic stimulus in their budget, no extra funding to tackle infrastructure & investment deficit west off Bann, lack of crucial funding 4 universities #ToryDUPAusterity #Budget2017 pic.twitter.com/PbK7nzxPP8
— Máirtín Ó Muilleoir (@newbelfast) November 22, 2017
Ó Muilleoir said: “This Tory budget represents a real term cut of between £100million and £200million in the money available for day-to-day spending in the North’s block grant next year.
“So there is no good news in this budget for our public services and for public sector workers who have already borne the brunt of years of Tory austerity cuts to the block grant.
“There is no extra money for health. No extra money for education. No extra money for our frontline services staff.
“The reference to £650million additional firepower for the North is a bad joke.
"The bulk of that money, to be spread over four years will be in Financial Transaction Capital monies which have to be loaned to businesses and which traditionally we have been unable to use.”
Mr Hammond also announced a consultation on a City Deal for Belfast, the first of its kind in Northern Ireland.
This would allow the city to do what it thinks is best to help businesses grow, create economic growth and decide how public money should be spent.
The government also announced today that:
- It remains committed to giving a restored Northern Ireland Executive the power to set the rate of corporation tax
- It will freeze air passenger duty for all short-haul passengers, keeping taxes on flights departing from Northern Ireland to £13
- It will publish a call for evidence in 2018 to consider the impact of VAT and air passenger duty on tourism in Northern Ireland, to report at Budget 2018
- Northern Ireland is also benefiting from £1million of LIBOR funding raised from fines levied on banks, being distributed to good causes
