NI Budget Revealed At Stormont

The Stormont Assembly has heard details of an agreed budget today, after late night talks at Stormont Castle (pictured) when Ministers spent hours discussing proposals by the First Minister Peter Robinson and Deputy First Minister Martin McGuinness.

As reported on NI Executive To Agree Budget earlier this week, the full details of the draft have been presented to the Assembly.

The plan follows £4bn of spending cuts in Northern Ireland's block funding from Westminster after the UK's Comprehensive Spending Review and will be the last of the devolved Assemblies to agree such a financial settlement.

Last night, the two main parties - the Democratic Unionists (DUP) and Sinn Fein - and the Alliance Party voted for the plan, while the Ulster Unionists and SDLP abstained.

DUP First Minister Peter Robinson hailed the blueprint as a "first class budget".

"This is the Northern Ireland Executive doing what it was elected to do, taking decisions, no matter how hard, on behalf of the people of Northern Ireland," he said.

Sinn Fein Deputy First Minister Martin McGuinness said the administration had risen to the challenge - despite many weeks of delays and disagreements.

"The Executive showed real leadership," he said. "The Executive has shown decisive leadership and has faced up to these very difficult challenges."

The details came from the NI Finance Minister Sammy Wilson who briefed the Assembly this morning and said the Executive had passed the budget test "with flying colours".

"It will be a good Christmas present for the people of Northern Ireland," he said, noting that it will raise nearly £1bn in new revenue to help offset the impact of £4bn spending cuts forced on Northern Ireland by UK cuts.

Half the target will be achieved by a major sell-off of publicly-owned assets, with other measures including £150m generated from an inflationary increase on rates, £16m brought in from a levy on plastic bags and £80m from housing association assets.

The proposals include no date being set for the introduction of water charges as well as a pay freeze for civil servants earning more than £21,000 and will see Belfast Harbour asked to contribute £125m to the Executive over four years from its cash reserves.

On the plus side, a hardship fund to help those hit by UK-wide welfare benefit cuts has also been proposed, an idea put forward by the SDLP Minister for Social Development, Alex Attwood, who has opposed the national cuts made by the Chancellor.

The Northern Ireland Secretary Owen Paterson - who was previously based in Stormont Castle before devolution - has welcomed the draft budget agreed by the Stormont Executive, which he said involved a "substantial allocation" to the police service.

Mr Paterson also assured MPs in Westminster today that if Northern Ireland's security situation deteriorated, the UK Government would be prepared to consider "going to the contingency reserve for extra funds".

Full details at: Wilson's Assembly Budget Statement

(BMcC/GK)