Chancellor announces £410 million additional funding for Stormont

by Q Radio News

The Chancellor has announced the Northern Ireland executive will receive an additional £410 million for Stormont departments as a result of the UK budget. 

Rishi Sunak confirmed all of the devolved administrations will receive extra funding with Scotland being awarded £1.2 billion and Wales, £740 million. 

Mr Sunak also announced many coronavirus related schemes will be extended to help businesses recover from the pandemic. 

Among his key measures, the chancellor announced:

• an extension to the furlough scheme until the end of September and more support for the self-employed
   
• the £20-a-week uplift in Universal Credit will continue for another six months
   
• the rate of corporation tax will rise to 25% in 2023, but with protections for smaller businesses
   
• a freeze of the income tax personal allowance from next year until 2026, with a freeze in the higher rate threshold over the same period
   
• a new "super deduction" scheme to allow companies to reduce their tax bill by 130% of the cost of new investments
   
• the UK economy is forecast to grow by 4% this year and by 7.3% in 2022 but, overall, is set to be 3% smaller than it would have been due to the COVID crisis, according to the Office for Budget Responsibility (OBR).

The Chancellor said the economy is also expected to return to pre-COVID levels by the middle of next year, six months earlier than previously thought. 

There's been mixed reactions to the Chancellor's announcement from Northern Ireland's business sector. 

Retail NI Chief Executive Glyn Roberts said, “Overall, this Budget is a bit of a ‘Curate’s egg’ with a mixture of positive and not so positive measures for the business community in Northern Ireland”

“We welcome the extension of the Furlough scheme until the end of September, but with employers expected to contribute 10% which will rise to 20% in the summer, it does reinforce the need for the Executive to clarify the timescale of its ‘strategy’ of lifting restrictions and allowing businesses to reopen”

“The Chancellor outlined proposals for a £6k Restart Grant per premises for independent retailers and other businesses - this is something we want our own Executive to introduce in Northern Ireland”

“Rishi Sunak has also introduced a year of rate relief for independent retailers in England and this is something our members expect to be brought forward by own Finance Minister”

“The increase of Corporation Tax could potentially cause problems for our recovery and poses huge questions for the future of Northern Ireland having a similar rate to RoI. That being said, it is welcome that some smaller businesses will be protected from this increase with the maintained 19% small profits rate”

“The big questions arising from this Budget are now directed back to the Northern Ireland Executive and how they are going to use the £410m extra funding to support business as we begin the long road toward a post-pandemic recovery”