Govt Departments Face £850m In Cuts

More than £850m in cuts have been proposed to government departments in Northern Ireland, it has been reported.

According to the BBC, Finance Minister Simon Hamilton mentioned the proposed cuts in a recent plan that was circulated to his colleagues.

On Monday, it was reported that up to £700m in cuts is needed, but this figure is now believed to be considerably higher.

Stormont needs to agree a draft budget for 2015/16 by Friday (31 October), otherwise it will lose a £100m emergency loan from the Treasury. The loan was initially given to help ease financial pressures for the remainder of this year.

Addressing the Stormont finance committee, Hamilton described the £700m as a "conservative enough estimate", adding: "The pressures we are facing are in excess of that and that necessitates tough choices on behalf of me and executive colleagues.

"It is very, very difficult to take that sort of quantity of money out of our budget in Northern Ireland without there being difficult decisions."

He added that education would be spared from any cuts this year, but that it might not be the case next year.

"These are decisions that the executive has to face this week, and very much the decisions we make in respect of health and, I think, more importantly, education which, of course, has been protected this year from any cuts. But I don't think that should be the case for next year," he said. "But if we were to protect it, that means the size of the reductions in percentage terms for departments could be as high as 20% and I don't think that is something that is achievable. I don't think that is a credible plan."

Negotiations as to a draft budget are still continuing, but Mr Hamilton has said he is "optimistic" that an agreement can be reached before Friday's deadline.

(JP/IT)