Northern Ireland Budget Day Live Blog

Okay, I’m starting this early so people can get into some of the reporting on the UK budget early. I’m in and out of Slugger Central all day, but the focus will unapologetically on how it affects Northern Ireland. That’s a job not just for reporting the bullet points of a speech but the unravelling of detail… So I hope to keep this one open for the next 24 hours…

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  • Brian Walker

    The balance in v complex budget hard to assess right away but it strikes me as not as severe as it might have been. Overall spending cuts set at £61 billion I make it not the IFS’s earlier guess of £85b.

     But growth forecasts down therefore unemployment up.

     Peston estimates a huge cut in the public sector of £100 billion in 5 years.

     Intriguing mention of “ consultation on realigning the NI economy closer to the private sector” But that will cost money, more than the cuts in corporation tax and bank levy will raise once the £61 billion cuts have bitten.

    We await the usual announcement from the NI dept of finance of the impact of the block grant.

     Eye watering £11 b out of welfare but nearly 1 million people taken out of tax and £150 more above inflation for poor children.

     Pension link to earnings restored or 2.5 % increase whichever is higher

     Housing benefit cut at top end (some families get 104 k a year he says!)

     2 year freeze on public sector pay and VAT to 20% from Jan will reduce spending therefore growth. Serious for NI.

     On public spending cuts, with health and foreign aid protected, some shelter for defence and education and key capital projects protected ( but none identified for NI) huge cuts in revenue and overall in other depts of 25% over 4 years. Ouch!

     Of special interests to NI business
    4% reduction in corporation tax over 4 years.
    Allowances for plant and equipment will fall but delayed
    Manufacturing will pay less tax overall
    CGT up from 18% to 28% from midnight, not 40% and basic rate tax payers protected – Tory victory over LibDems
    Better access to lending for SMEs
    Small business rate cut by 1% from 2011
    Bank levy co-ordinated with France and Germany to raise a ( modest?) £2 b pa

    Overall a deflationary effect on NI. This means real progress on strengthening the private sector must not be delayed. But it will cost public money. Are moves to align corporation tax with the Republic finally dead?

  • Ciaranbelfast

    How can banks get away again. No tax on bonuses, a bank leavy that will raise 2 Billion per year and yet a drop in corporation tax from 28% to 24% over 4 years. The banks will surely gain from this

  • slug

    The rise in the income tax threshold will benefit Northern Ireland disproportionately given the perponderence of low incomes in NI.

    The difference in Corp Tax between NI and ROI falls by 26% from 15.5 to 11.5.

  • sevo

    the cut in help with morgage intrest rates seems very counterproductive if you end up loosing your home because of it then the goverment are bound by law to eventually rehouse you which in most cases means paying alandlord 500 amonth instead of the 50 60 a month in intrest would that be accurate or way of the mark

  • stevo

    i asked about the cuts in morgage rate intrest payments the cut it by half leaving some people to pay 50 100 pounds a month if they loose their home are the goverment not legally bound to eventually rehome them and in most cases pay landlords approx 5 6 hundred amonth in housing benefits is this right or wrong