Belfast Telegraph

Thursday 31 July 2014

Chancellor slashes Northern Ireland's slice of the pie

Parliament Buildings at Stormont
Parliament Buildings at Stormont

Northern Ireland will get around £21m of new money because of the measures in Chancellor George Osborne’s Budget —a massive cut within months.

That’s the view of PwC economist Dr Esmond Birnie who said the sum is our allocation of the capital and expenditure measures.

It’s worked out using the Barnett Formula which allocates public money to the four UK regions.

“The Executive gets a percentage of all new spending announced for England in the Budget Statement and that amounts to an estimated £21m over the next two years,” Dr Birnie said. “That’s around 15% of the £136m the region was allocated in last year’s Autumn Statement and so is a significant decline.

“It does reflect the recent warning from Finance Minister Simon Hamilton that Northern Ireland was facing even greater austerity than has been felt up until now.”

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