News

'Fantasy' budget passed but no welfare deal

Finance minister, the DUP's Arlene Foster. Picture by Mal McCann
Finance minister, the DUP's Arlene Foster. Picture by Mal McCann Finance minister, the DUP's Arlene Foster. Picture by Mal McCann

STORMONT last night passed a so-called 'fantasy' budget without reaching agreement on welfare changes.

Money for public spending is due to run out in months due to a £600m hole in the budget caused by the failure to agree welfare reform.

DUP finance minister Arlene Foster warned ministers against taking rash spending decisions without a deal.

But senior Sinn Féin negotiator Conor Murphy said there should be a united approach to combating austerity, which he blamed on the British government.

Ms Foster said: "It would be very foolish for any minister to continue to spend without any regard to the situation that we find ourselves in.

"If welfare reform was implemented we could continue with our discretionary spending.

"Without welfare reform there is no Stormont House Agreement and therefore there is not the flexibility available to us which we require to move forward."

But Mr Murphy said austerity was hurting the most vulnerable.

"The approach the British government have taken has damaged the vulnerable - they are damaging the working poor, restricting our ability to provide frontline services and it will undermine any prospect of economic recovery for the people in this part of Ireland," he said.

Most of the spending shortfall is due to a dispute between unionists and nationalists over December's Stormont House Agreement.

Sinn Féin and the SDLP oppose welfare changes which they believe will affect those most in need.

But the DUP argue they are being irresponsible with public finances.

Treasury penalties have been imposed while the parties try to come to a deal.

Some of the hole in the spending plans involves other departmental budgetary pressures that have emerged since the budget was first struck at the start of the year.

While the Executive made its budget in January, the Assembly must vote twice a year to secure the legal authority to spend the money.

The first vote released 45 per cent of the budget and Mrs Foster had been seeking Assembly backing for the remaining 55 per cent.