'Mostly Positive' Budget Reaction In NI

Although the NI Executive will have to find efficiency savings of £122m by 2011 after yesterday's UK Budget, there is some relief as there were fears the savings demanded from Stormont by the Treasury would be much higher.

Belfast's skyline (pictured) should continue to benefit from construction investment despite the medium term financial cuts being part of the Budget unveiled by Chancellor Alastair Darling.

He wants savings within all government departments, right across the UK, including NI.

However, extra short-term funding of £116m was promised as the Stormont Executive makes the longer-term cuts. There will also be an extra £28.7m for policing.

Following social security changes, Northern Ireland will also receive an extra £27m for measures such as winter fuel payments.

Reactions have been mixed, but mostly echoed this 'relief'.

The Secretary of State Shaun Woodward welcomed the statement saying that it brought real and tangible benefits to Northern Ireland.

"It will allow our outstanding PSNI to be proportionately resourced to ensure that community policing will continue to protect the public," he said.

"This Government has consistently recognised the needs of people in Northern Ireland which is why we have worked hard to ensure a settlement which is fair and which will continue to support political development in the run up to the devolution of Policing and Justice powers to the Assembly."

Social Development Minister Margaret Ritchie said that, despite concerns about the budget overall, the measures are welcomed.

"I welcome the fact that the UK Government is investing an extra billion pounds in social housing and fuel poverty alleviation.

"It is worth noting that even though the Chancellor has little room for manoeuvre, he has chosen to put significant additional resources into housing. I believe it is because he accepts the argument from people like me that social housing investment, in addition to tackling waiting lists and housing stress, is actually the best way to stimulate the economy," she said.

"Housing investment creates long-term assets while providing much needed employment in the construction sector.

"It is by far the best way to create new jobs and protect existing jobs in that sector."

The Alliance party is not so sure, with Stephen Farry MLA noting: "This Budget provides a sobering measure of the depth of the current economic crisis and the austerity that will have to be incurred over years to come in putting things right today. Alliance is not convinced of the merits of the VAT cut. It amounts to a loss of £8bn, with little benefit in boosting investment for recovery. Northern Ireland's share of this is around £200m."

Meanwhile, one charity representative has also been commenting.

Gerry McElwee, Head of Cancer Prevention, Ulster Cancer Foundation and Secretary of ASH NI (Action on Smoking and Health), said: "The 2% inflation-only tax rise is a missed opportunity and will do little to reduce smoking rates amongst local people.

"UCF had urged the Chancellor to re-introduce a real price escalator on tobacco tax of 3% above the rate of inflation and to strengthen the Government's anti-smuggling strategy.

"UCF had also called for an overhaul of the current tax system that allows tobacco companies to deduct marketing costs as legitimate business expenses, thus reducing their liability for corporation tax," he said.

(BMcC/JM)