Spending Review Puts Spotlight on NI Executive (20th October 2010)

Northern Ireland’s Chartered Accountants said that Chancellor George Osborne’s Comprehensive Spending Review confirms that tough decisions lie ahead for the Northern Ireland Executive.

Richard Gardiner, Chairman of Chartered Accountants Ulster Society, a district society of Chartered Accountants Ireland said: “The Chancellor has outlined that the Northern Ireland Executive will reduce resource spending by 7% in real terms, and capital spending by 37% in real terms over the next 4 years. Those figures are daunting and indicate the size of the challenge ahead.

“Mr Osborne has also indicated that it will be for the Northern Ireland Executive to manage those reductions and decide where cuts should come. Initial indications from the First and Deputy First Minister indicate that the burden is even harsher than expected, however the Chancellor is clear on the fact that Northern Ireland must  play its part in bearing a share of the cuts. This will require our Executive to take tough decisions and presents an opportunity for all of our political representatives to unite in providing leadership at this very challenging time. As Chartered Accountants our members across the private and public sectors can and will play our part in supporting our Executive in providing this leadership.

“The Chancellor’s statement does outline that £18bn will be invested in Northern Ireland by 2018 as laid out in the investment strategy, but what we didn’t receive any details on today is the Government’s plan to rebalance the Northern Ireland economy.  We expect a consultation paper outlining those plans within the coming month. We hope that this paper will include some positive news, but it will be sure to spark considerable debate.”

“There are likely to be many, and varied, immediate reactions to the announcements today.  However the real challenge will be to address the challenges raised by today’s announcements in a realistic and constructive manner in the weeks and months ahead.  Now is the time for our Executive and leaders in both the public and private sectors to show a co-ordinated and united leadership at this critical time for the future of our economy.”