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Darling unveils pre-budget detail | Darling unveils pre-budget detail |
(about 2 hours later) | |
Northern Ireland is to get an extra £28m following the chancellor's pre-budget report. | Northern Ireland is to get an extra £28m following the chancellor's pre-budget report. |
Around £8m is to be given to Stormont departments while the rest is central government spending on areas like unemployment and child benefit. | Around £8m is to be given to Stormont departments while the rest is central government spending on areas like unemployment and child benefit. |
It not yet clear how Northern Ireland will be affected by wider government efficiency savings. | |
Finance Minister Sammy Wilson has said they could mean cuts of up to £100m in Northern Ireland's bloc grant. | Finance Minister Sammy Wilson has said they could mean cuts of up to £100m in Northern Ireland's bloc grant. |
The chancellor's statement set the tone for the economic debate in the run-up to the election - which must be held by next June. | The chancellor's statement set the tone for the economic debate in the run-up to the election - which must be held by next June. |
In his statement to MPs, the chancellor unveiled a 2.5% rise in the state pension from next year and a 0.5% rise in national insurance contributions from April 2011. | In his statement to MPs, the chancellor unveiled a 2.5% rise in the state pension from next year and a 0.5% rise in national insurance contributions from April 2011. |
Public sector pay faces a squeeze, with increases restricted to 1% for two years from 2011. That will have a particularly significant impact on Northern Ireland because of its large public sector. | Public sector pay faces a squeeze, with increases restricted to 1% for two years from 2011. That will have a particularly significant impact on Northern Ireland because of its large public sector. |
WHAT IS THE PRE-BUDGET REPORT? Each year the chancellor delivers two reports to MPs, updating them on the state of the economy and planned fiscal changes. | WHAT IS THE PRE-BUDGET REPORT? Each year the chancellor delivers two reports to MPs, updating them on the state of the economy and planned fiscal changes. |
The pre-Budget report (PBR) takes place in the autumn with the Budget each spring. | The pre-Budget report (PBR) takes place in the autumn with the Budget each spring. |
This year's PBR will be Mr Darling's third since he became chancellor in June 2007 and, with an election imminent, his most important. | This year's PBR will be Mr Darling's third since he became chancellor in June 2007 and, with an election imminent, his most important. |
You can watch BBC TWO's pre-Budget report special - together with text commentary and expert analysis and reaction on the BBC website from 1130 to 1430 GMT | You can watch BBC TWO's pre-Budget report special - together with text commentary and expert analysis and reaction on the BBC website from 1130 to 1430 GMT |
Economic challenges for the parties Nick Robinson's view | Economic challenges for the parties Nick Robinson's view |
Cutting | 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." |