PMS Lifeline As Chancellor Cuts £2bn

While Stormont's Finance Minister, Sammy Wilson has said that he expects the NI Executive will lose £2bn of its block grant in the UK Chancellor's Comprehensive Spending Review today, there may be some limited 'good news'.

The Government is expected to throw a lifeline to thousands of savers caught up in the Presbyterian Mutual Society (PMS) crisis with investors with the NI society hoping for a positive outcome in Parliament.

The PMS crashed in November 2008, owing almost 10,000 investors money and, since then, only larger savers got 12% of their money back. But those with less than £20,000 saved got nothing.

During PMs Questions this morning, Prime Minister David Cameron said he recognised the difficulties in finding a "fair resolution" to the plight of savers and it was strongly suggested to MP William McCrea in The Commons that George Osborne's review will cover the PMS savers getting money back.

Buy, the Chancellor's statement is also anticipated to outline almost 500,000 UK public sector jobs cuts by 2014-15.

In Stormont, soon after the announcement around noon, Sammy Wilson (pictured) and his Department of Finance will work out the corresponding impact of the cuts in Northern Ireland, but this is already expected to be the biggest programme of cuts in the UK for decades with the average reductions hitting 25% in most departments.

Labour leader Ed Miliband said the Government were taking "an irresponsible gamble with our economy".

"There is an alternative. What the government should be doing is putting in place a plan to reduce the deficit but also protect jobs and growth in our country.

"People will be very fearful about what is being announced today, fearful for their jobs and fearful for many of the services they rely on up and down the country."

Yesterday 8% cuts to the defence budget were outlined in the strategic defence review highlighting a total of 42,000 job cuts in the Ministry of Defence and in the armed forces.

With the exception of health and international development, (in England and Wales) cuts in other departments could range between 25% and 40% in addition to welfare cuts.

Plans have already been outlined to stop child benefit payments to higher rate taxpayers.

It is believed the review also forecasts 490,000 fewer public sector workers by 2014-15.

Ahead of the announcement, thousands of protesters gathered in Westminster yesterday to lobby MPs.

On Tuesday, Deputy Prime Minister Nick Clegg told Lib Democrats the Spending Review had involved "difficult decisions" but that it "provides the best evidence yet of why we are in government".

He added the decisions will "build a fairer and more liberal Britain".

(BMcN/GK)