NORTHERN IRELAND: The British Chancellor is to release some £1.3 billion for use by the North's Executive over the next three years.
The rise is equivalent to a growth in the annual budget of 3.3 per cent over three years and is additional to rises announced in the budget.
The bulk of the spending is expected to go on education and follows the Executive's own plans for raising and allocating resources on infrastructure announced in May.
Mr Gordon Brown outlined his spending plans to the Commons yesterday which involve some £90 billion for the United Kingdom as a whole.
Details of budget allocation by the North's departments will not be concluded until the autumn.
The Northern Secretary welcomed the announcement and appeared keen to emphasise the political importance of the added spending in advance of next year's crucial Assembly elections. Dr John Reid also announced additional resources for justice and policing.
Nearly £300 million in additional funding is to be spent on what he called "a fully inclusive world-class police service and a fair and open system of justice for the 21st century, both of which will secure the respect and growing trust of all the people of Northern Ireland".
Policing reforms, outlined by Mr Chris Patten, have been hampered by a high absenteeism rate and low morale among officers retained in the changeover from the old RUC to the new Police Service of Northern Ireland.
Recurring unrest in parts of Belfast over the past year have added to pressure on policing resources, and the new cash will help alleviate these demands.
Dr Reid has already stated his hope that policing and justice powers will be devolved to Stormont some time during the next five-year Assembly term.
The Executive has already been allocated powers to raise low-interest loans from the British Exchequer to finance badly-needed improvements in roads, communication, water and sewerage projects, all of which are seen as barriers to economic development.
Stormont will be enabled to raise extra capital for investment on the back of revenues raised through the North's business and domestic rating system.