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£370m cash cuts 'by Christmas' £370m cash cuts 'by Christmas'
(41 minutes later)
Executive spending cuts of £370m are needed by Christmas, the NI finance minister has said. Executive spending cuts of £370m are needed by Christmas, the NI finance minister Sammy Wilson has said.
In a confidential memo to Executive colleagues, seen by the BBC, Sammy Wilson highlighted a funding gap in the budget. In a confidential memo to Executive colleagues, seen by the BBC, Mr Wilson highlighted several budget pressures.
The finance paper describes significant money pressures. The paper cites swine flu and civil service back-pay as well as the continued deferral of water charges.
He said cuts of £200m were required from current expenditure, as well as £172m from capital spending - such as roads, hospitals and schools.
Mr Wilson denied there was a "black-hole" at the centre of his accounts and said he was disappointed the memo had been leaked.
"I told the Executive at the last meeting that I would be bringing to them a paper indicating the consequences of a decision that we made and all signed up to - every party - that we would defer water charges," he said.
"The consequence of that is that if we don't find the money from charges, then we find it from departmental budgets and this is giving early warning to ministers that here are the consequences for your budget of a continuation of this policy."
He said there needed to be forward planning to ensure there was a "seamless move into next year's spending" and that it was not "an emergency budget".
The paper makes it clear that ministers cannot go on trying to ease financial pressures by looking for unspent funds throughout the budget across the year.
It calls for "early action" and "difficult decisions". Deferring water charges in 2011 could cost up to £420m, the minister warned.It calls for "early action" and "difficult decisions". Deferring water charges in 2011 could cost up to £420m, the minister warned.
However, even if the regional development minister recommended water charges, Mr Wilson doubted there would be time to pass legislation to introduce household water bills next year.However, even if the regional development minister recommended water charges, Mr Wilson doubted there would be time to pass legislation to introduce household water bills next year.
The finance minister pointed to other pressures such as swine flu and the civil service equal pay claim.
He said cuts of £200m were required from current expenditure, as well as £172m from capital spending.
He set out a range of options to achieve this and asked Executive ministers for their views.He set out a range of options to achieve this and asked Executive ministers for their views.
The recession means the Executive has not received the income from land sales that it expected.The recession means the Executive has not received the income from land sales that it expected.
The paper also reveals a delay in two major investments - the Department of Environment's water management scheme and the Royal Exchange, a £360m retail and residential project in Belfast.The paper also reveals a delay in two major investments - the Department of Environment's water management scheme and the Royal Exchange, a £360m retail and residential project in Belfast.