Wednesday, 20 October 2010

Barnett - Updated

If I picked Osborne up right Northern Ireland will recieve a cash increase in the first year to £9.5 billion, by a quick reckoning this is a below inflation rise but higher than the flat cash prediction.  The other three years I don't know.

I picked him up wrong, the block grant will rise to £9.5bn in the second half of the CSR not next year.  The grant will increase from £9.3bn this year to £9.4bn for the first two years.  Treasury figures say this represents a 6.9% cut over the CSR period.

UPDATE On the capital side the Treasury figures predict a 37% cut over the CSR period for Northern Ireland from £1.3bn this year to £0.9bn in the first two years of the CSR and to £0.8bn in the final two years.  This brings back into focus Paterson's promises.

UPDATE 2 Sammy Wilson has raised the capital issues and Paterson's comments.  Osborne's defence is his capital cuts are less than Labour but sidesteps the SoS's comments.

UPDATE 3 The Treasury figures and DFP figures are different.  This is based on whether or not you include this year's Coalition cuts in your calculations or not.  Treasury don't and DFP does.

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