NORTHERN IRELAND:AN EXTRA £33 million is on its way to Northern Ireland thanks to Alastair Darling's latest budget but the cash boost has failed to win over the North's Finance Minister.
Sammy Wilson welcomed the additional funding but said the chancellor had left too many unanswered questions about the state of the UK’s future public finances.
Mr Wilson believes this could make it difficult for the Executive to plan ahead and there is also no guarantee Northern Ireland will not be hit by severe public-sector spending cuts in the short term.
Civil servants in the North could be particularly badly affected by Mr Darling’s determination to cut government spending and the budget deficit.
Public-sector workers’ pay and pensions were targeted in the budget, but 210 civil servant jobs will also be relocated from London to the North as a result of it.
Liam Byrne, chief secretary to the UK treasury, said the budget was designed to support businesses and families in the North.
“This is a budget about opportunity, not austerity,” he said.
Joanne Stuart, chairman of the Institute of Directors in Northern Ireland, said there were specific measures which could boost small to medium-sized businesses, such as the doubling of the annual investment allowance to £100,000.
She believes the establishment of a growth fund to help firms get better access to finance and the continuation of a scheme to allow businesses more time to pay their tax will also be welcomed by the business community.
Nigel Smyth, Northern Ireland director of the Confederation of British Industry, said there were a number of modest commitments to help businesses, including the decision to stage increases in fuel duties, which begin in April with a one penny increase.
But Brian Donaldson from the Maxol Group said the increases would hurt petrol retailers, particularly in Border locations.
“There is already a duty and VAT difference of 5 pence per litre on petrol and 15 pence per litre on diesel. These increases further discourage custom in Northern Ireland,” Mr Donaldson added.
Increases in tobacco and alcohol duties with wine, beer and spirits up 2 per cent could also make cross-Border shopping less attractive for southern consumers across the board.
Alan Bridle, head of economics with Bank of Ireland Northern Ireland, said the budget was, in general, one that the North “could have done without”.
“On the business side, it was disappointing the chancellor did not reconsider two measures already announced – the rise in corporation tax for small companies from April and the increase in Employer National Insurance contributions. The timing of both seems particularly inappropriate,” Mr Bridle said.
Headline measures in the budget, such as changes to stamp duty, which will see it abolished on houses with a price tag of up to £250,000, have been greeted with lukewarm approval in the North.
