Stormont finances facing major cuts by Westminster

Stormont’s finances could face major cuts as part of UK-wide efficiency savings by the Chancellor of the Exchequer, it was warned…

Stormont’s finances could face major cuts as part of UK-wide efficiency savings by the Chancellor of the Exchequer, it was warned today.

Finance minister Nigel Dodds hit out at critics who warned of a potential black hole in his three-year budget plans and who called for a redrafting of his blueprint in the face of the economic downturn.

As the Assembly debated the second stage of the Budget Bill today, Mr Dodds claimed the real threat to the Stormont purse-strings came from potential cuts by Westminster.

"The knock-on effect of the announcement in the chancellor's pre-budget report that he would seek to find £5 billion of efficiency savings across Whitehall departments has the potential to seriously impact the Executive's budget plans in 2010/2011," he said.

"The extent to which this will affect Northern Ireland will not become clear until the budget is unveiled in April.

"Recent announcements by the Opposition indicate that they would be even more draconian in their plans and would start this process in the 2009/2010 financial year."

Mr Dodds added: "We are undoubtedly in challenging economic times and the Executive has done much to help alleviate the impact on individuals and small businesses whilst working to stimulate the local economy.

"The swingeing cuts proposed from Whitehall, however, would have a serious impact on the work of this Executive and could have a devastating effect on front-line services."

The minister said the budget had been unanimously agreed by the Executive and that it had focused on boosting the local economy.

Before today's Assembly debate got under way, he highlighted the threat of cuts from central government.

"This is the real threat facing the Executive's budget," he said.

"I will be working hard to challenge the chancellor not to enforce these cuts on Northern Ireland and would hope that all parties in the Assembly will support me in putting a strong case to Westminster that he should honour his promises."

PA