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Politicians fear NI budget cuts Politicians fear NI budget cuts
(40 minutes later)
Politicians at Stormont fear millions of pounds could be cut from the government block grant as a result of the budget.Politicians at Stormont fear millions of pounds could be cut from the government block grant as a result of the budget.
First Minister Peter Robinson has warned of a negative impact if Gordon Brown reneges on a pledge to give NI a three-year financial settlement.First Minister Peter Robinson has warned of a negative impact if Gordon Brown reneges on a pledge to give NI a three-year financial settlement.
Some predict that between £140m and £600m could be taken from Stormont.Some predict that between £140m and £600m could be taken from Stormont.
The Chancellor said there will be £15bn of "efficiency" cuts across government from 2010.The Chancellor said there will be £15bn of "efficiency" cuts across government from 2010.
Behind-the-scenes talks have taken place in recent weeks between Northern Ireland politicians and Downing Street. Alliance finance spokesperson, Stephen Farry said Northern Ireland could get a short term boost but would still be facing longer term cuts.
BBC Northern Ireland political reporter Stephen Walker said: "Whilst predictions differed greatly there appeared to be a growing consensus - that cuts are inevitable and they will hit the work of the executive." "We will be entitled to a proportionate share from new financial commitments to training and employment measures and financial support for renewable technologies," he said.
"Northern Ireland will therefore get a short-term financial boost in the range of £30m to £50m.
"In the longer-term, Northern Ireland risks taking its share of the announced £15bn efficiency savings. Cuts of this scale would take £450m out of our local budgets over the next few years. It remains to be seen if our Ministers can negotiate an exemption for Northern Ireland from this."
The DUP's Simon Hamilton, the Stormont finance committee vice-chair, said cuts would be a breach of the deal which restored devolution.The DUP's Simon Hamilton, the Stormont finance committee vice-chair, said cuts would be a breach of the deal which restored devolution.
UnacceptableUnacceptable
"A guaranteed comprehensive spending review settlement and the acceptance of the principle that any efficiency savings made in Northern Ireland would be retained in Northern Ireland were parts of the financial package that saw devolution restored," he said."A guaranteed comprehensive spending review settlement and the acceptance of the principle that any efficiency savings made in Northern Ireland would be retained in Northern Ireland were parts of the financial package that saw devolution restored," he said.
"Welshing on those commitments would be completely unacceptable.""Welshing on those commitments would be completely unacceptable."
Sinn Fein's finance spokesman Mitchel McLaughlin said the tough economic climate strengthens the argument for greater fiscal control in the hands of locally elected politicians.Sinn Fein's finance spokesman Mitchel McLaughlin said the tough economic climate strengthens the argument for greater fiscal control in the hands of locally elected politicians.
"Decisions taken by the British Treasury are taken in the interests of the British government, the British banking system and economic conditions pertaining principally on the island of Britain," he said."Decisions taken by the British Treasury are taken in the interests of the British government, the British banking system and economic conditions pertaining principally on the island of Britain," he said.
"Any affects that these decisions have on conditions in the North of Ireland are peripheral to the thinking of the British Treasury."Any affects that these decisions have on conditions in the North of Ireland are peripheral to the thinking of the British Treasury.
"Sinn Fein believes that the only long term solution facing us on this Island, both north and south, is a single strategy on taxation and regional and economic development."
Northern Ireland receives a block grant of about £18bn every year, £10bn of which is controlled by the Executive.Northern Ireland receives a block grant of about £18bn every year, £10bn of which is controlled by the Executive.
If the Executive has to make savings at the lowest predicted figure of £140m that would be equivalent to the entire annual budget of the Department of the Environment.If the Executive has to make savings at the lowest predicted figure of £140m that would be equivalent to the entire annual budget of the Department of the Environment.
Meanwhile, the Northern Ireland drinks industry has warned the rise in alcohol duty in the budget would put jobs at risk.Meanwhile, the Northern Ireland drinks industry has warned the rise in alcohol duty in the budget would put jobs at risk.
The drinks industry is also worried about the chancellor's announcementThe drinks industry is also worried about the chancellor's announcement
The Federation of Retail Licensed Trade (FRLT) said the 2% rise could "cripple the industry", which employs about 34,000 people.The Federation of Retail Licensed Trade (FRLT) said the 2% rise could "cripple the industry", which employs about 34,000 people.
In December, the Federation of Retail Licensed Trade said sales in beer had fallen 8% as more people buy alcohol in supermarkets.In December, the Federation of Retail Licensed Trade said sales in beer had fallen 8% as more people buy alcohol in supermarkets.
"It is beyond comprehension that the Chancellor should again raise the duty on alcohol, the third increase in the last year," said FRTL chief executive Colin Neil."It is beyond comprehension that the Chancellor should again raise the duty on alcohol, the third increase in the last year," said FRTL chief executive Colin Neil.
"This announcement makes a mockery of the Government's claim to be doing all it can to save jobs and businesses as its action today will result in thousands of job losses with many businesses going to the wall.""This announcement makes a mockery of the Government's claim to be doing all it can to save jobs and businesses as its action today will result in thousands of job losses with many businesses going to the wall."