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Wilson worried by bloc grant cut Wilson worried by bloc grant cut
(about 2 hours later)
Finance Minister Sammy Wilson has said he is worried that the Northern Ireland bloc grant could be slashed in Alistair Darling's budget cuts.Finance Minister Sammy Wilson has said he is worried that the Northern Ireland bloc grant could be slashed in Alistair Darling's budget cuts.
The Chancellor will outline his latest budget plans on Wednesday.The Chancellor will outline his latest budget plans on Wednesday.
It is thought he may make announcements on VAT, Stamp Duty and Inheritance Tax and detail what savings are required across Government departments.It is thought he may make announcements on VAT, Stamp Duty and Inheritance Tax and detail what savings are required across Government departments.
Mr Wilson said the Chancellor had already said he would be looking for £3bn worth of Government efficiencies.Mr Wilson said the Chancellor had already said he would be looking for £3bn worth of Government efficiencies.
He said that Northern Ireland would bear "a proportion of that" and that if it was on a pro rata basis this would amount to about £100m.He said that Northern Ireland would bear "a proportion of that" and that if it was on a pro rata basis this would amount to about £100m.
"If you are told your bloc grant is going to be reduced by that amount of money then you've got to find it: this will not be negotiable with the Treasury," he said."If you are told your bloc grant is going to be reduced by that amount of money then you've got to find it: this will not be negotiable with the Treasury," he said.
Cutting
Employment and Learning minister Sir Reg Empey said that demand for the services his department were providing was going up because of rising unemployment.Employment and Learning minister Sir Reg Empey said that demand for the services his department were providing was going up because of rising unemployment.
"If we have to start cutting that will effect the service we can deliver - that's inevitable," he said."If we have to start cutting that will effect the service we can deliver - that's inevitable," he said.
Northern Ireland has traditionally had a larger reliance on the public sector than the rest of the UK.Northern Ireland has traditionally had a larger reliance on the public sector than the rest of the UK.
Alliance Economy spokesman Stephen Farry said that this may prove to be an Achilles' heel for the local economy.Alliance Economy spokesman Stephen Farry said that this may prove to be an Achilles' heel for the local economy.
"Whenever there have been recessions in the past this has been a cushion that has seen us through the difficulties, for example in the early 90s when the UK went through a recession Northern Ireland didn't," he said."Whenever there have been recessions in the past this has been a cushion that has seen us through the difficulties, for example in the early 90s when the UK went through a recession Northern Ireland didn't," he said.
"But this time because we are potentially seeing cuts in public spending to pay off the debt this becomes a very doubled-edged sword.""But this time because we are potentially seeing cuts in public spending to pay off the debt this becomes a very doubled-edged sword."