Hi °C | Lo °C Northern Ireland's budget handout from Westminster was last night branded " bad news" for the province after the Chancellor revealed it would rise by just 1.9%.
Alistair Darling announced the settlement for the province would go up to £10bn in 2010 as he made two major statements - the Comprehensive Spending Review and the Pre-Budget Report - to Parliament.
The deal fell far short of the 2.4 per cent hike pledged to Wales.
UUP MP Lady Sylvia Hermon said: "Today's pre-budget statement was brought forward to launch the election that never was. Unfortunately, that has meant bad news for Northern Ireland.
"Our increase lags behind Wales and there's nothing special for us here in the announced reduction of corporation tax.
"Many of the better aspects of the Chancellor's statement have simply been pinched from the list of policy announcements at the Tory party conference last week.
"The public are not so easily hoodwinked and I wish the new Brown government would stop treating us as if we were stupid."
Mr Darling said the funding was in addition to spending on non-devolved areas such as defence, tax credits and pensions.
He added: "The devolved administrations have all got their Barnett entitlement in full. There have been no changes to the basis on which that is calculated."
Mr Darling "re-announced" plans to cut corporation tax rates from 30p to 28p, which his predecessor unveiled in March.
He also forecast growth of between 2% and 2.5% next year as he insisted the UK economy was in "good stead" to withstand the current instability.
Addressing a packed Commons chamber, he said there was a need for a " modern tax regime" based on three principles: being competitive, simple and fair.
He announced three reviews aiming to simplify the tax system to help self-employed people and businesses, saving business "up to £100 million a year".
From April next year, capital gains taper relief will be replaced with a single 18% rate.
"I believe that everyone who lives and works here should pay their fair share," he added.
The DUP's Sammy Wilson, MP for East Antrim, called for support for the private sector economy to enable it to grow to "fill the gap that is being left by the reduction in public spending".
Shadow Chancellor George Osborne said the Tories were winning the battle of ideas. "Growth is down, borrowing is up, the spending rate is down and, overall, taxes are likely to go up. What a mess after 10 years in office," he said.
Northern Secretary Shaun Woodward said the cash will fund policing and criminal justice, which will allow the new integrated training college for the police, fire and rescue service and prison service to go ahead.
But around £200m of funding will also be raised though "efficiency savings" across the NIO, police and prison service.
Mr Woodward added: "This settlement means that we can deliver on the much-needed integrated training college for the police, prisons staff and the fire and rescue services.
"It means we can move ahead with new prison accommodation and upgrading the facilities of the Forensic Science Agency.
"This settlement puts the PSNI and criminal justice system on a sustainable footing for the years ahead. This should be reassuring to the Executive as it continues its preparations for the devolution of justice and policing."
Business, Page 35
