Chancellor unveils funding boost for province

Chancellor Gordon Brown has unveiled a multi-million funding increase for Northern Ireland as part of his three year spending review, which has seen him pledge a total of £90 billion on improving public services throughout the UK.

In his speech on Monday afternoon, the Chancellor started by announcing a £3.5 billion increase in the defence budget for the UK following increased demands on the domestic defence sector since the September 11 terror attacks. He then revealed that the overseas aid budget would rise by £1.6 billion.

Closer to home, a £400 million boost in funding for the agricultural sector is directly aimed at injecting some life into the beleaguered farming industry, while science receives a 10% increase in its allocation. Transport is to get a 12% rise in funding to improve the outlook for the UK's rail network.

The Northern Ireland Office will receive "significant new resources" aimed at supporting policing and criminal justice reforms, with a 3.5% increase in the Northern Ireland Office’s budget over the three years to 2005/06.

Welcoming the NIO settlement, the Secretary of State for Northern Ireland, Dr John Reid said: “We will use the extra resources to continue to honour our Good Friday Agreement pledges and demonstrate our commitment to the peace process.

“With these extra resources of nearly £300 million, I will now plan ahead in order to provide Northern Ireland with a fully inclusive world class police service and a fair and open system of justice for the twenty-first century – both of which will secure the respect and growing trust of all the people of Northern Ireland.”

The Chancellor also unveiled substantial new resources for the Northern Ireland Executive which will see spending in Northern Ireland rise an average annual rate of 3.3 per cent over the next three years – up by £0.4 billion in 2003-04, £0.76 billion in 2004-05 and £1.2 billion in 2005-06 compared to 2002-03.

Mr Brown went on to describe the economic fortunes of the UK as positive, with low unemployment, low interest rates, and inflation all in hand, and expressed his belief that key economic targets could be met through prudent increases in government spending.

However, schools were firmly at the top of the Chancellor's agenda, with a promised increase in spending to reach £4.5 billion by 2005/6, which should pave the way for an extensive programme of remodernisation throughout the educational sector.

Speaking earlier on Monday, Prime Minister Tony Blair said that increased investment in such sectors was vital to ensure "the future strength of our economy". He added: "If we are not investing in things like education and transport, then not just our society will be weakened, but our economy will be weakened too."

(CL)