Osborne pledge on £2bn health funding draws calls for halt to cuts in North

Francess McDonnell

Proposed cuts in the health service in Northern Ireland should be put on hold following a promise of more investment in the service by UK chancellor George Osborne, it has been argued.

The pledge to inject £2 billion into the UK health service could swell health budgets in the North by an extra £60 million according to SDLP health spokesman Fearghal McKinney.

Chancellor George Osborne announced plans to invest £2 billion into frontline health services ahead of his Autumn budget statement this week which will detail the UK government’s plans for the British economy.

Mr Osborne has said the UK’s coalition government had got public finances under control and can now afford to invest in the National Health Service.

Mr McKinney said the new funding programme could potentially deliver up to £60 million for the Northern Ireland Health Service.

As a result, Mr McKinney said the North’s Health Minister should halt proposed cuts in the local health service, which is believed to be facing a budget shortage in the region of £160 million next year.

“We all know of the pressures on the Northern Ireland Health Service is under and if there is any chance of more money, it should be welcomed.

“It is hoped that this extra funding will ease the growing pressures on front-line staff in the health service,” Mr McKinney added.

The chancellor will deliver his Autumn statement on Wednesday.

In that, Mr Osborne is widely expected to announce Statement that Northern Ireland will be granted the power to set its own rate of corporation tax – a move which is likely to spark a fresh row with the Scottish Executive.

Business and political leaders in the North have consistently argued that a lower rate of corporation tax would help Northern Ireland to attract new investors. The local rate of corporation tax is currently 21 per cent compared to 12.5 per cent in the Republic.

The North’s First Minister, Peter Robinson, has said a lower rate could “revolutionise” the local economy, create more than 50,000 jobs and “build prosperity for years to come”.

Kevin Kingston, president of the Northern Ireland Chamber of Commerce and Industry believes that lower rates of corporation tax could deliver “game changing” private sector growth.

But if Northern Ireland secures the new tax power Scotland’s first minister Nicola Sturgeon has warned that Mr Osborne could have a fight on his hands as Scotland will want the same powers.