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NI budget plan includes pay freeze

Sammy Wilson - Four-year budget plan outlined
Sammy Wilson - Four-year budget plan outlined

Northern Ireland's finance minister Sammy Wilson has outlined his budget proposals in the Stormont Assembly.

The measures include a two-year pay freeze for civil servants who earn more than £21,000 a year and a commitment that water charges will not be introduced during the next four years.

Mr Wilson today became the first Northern Ireland minister since the Good Friday Agreement to detail a budget based on significantly reduced resources.

The proposals suggest a power-sharing administration attempting to find home-grown solutions to its challenges. The budget plans cover a four-year period.

Those 12,000 of Northern Ireland's 26,000 civil servants who earn more than £21,000 a year will be subjected to a two-year pay freeze. Northern Ireland's 200,000 public servants, who come under UK pay agreements, can expect similar treatment. The moratorium on civil service recruitment will continue.

The three-year freeze on domestic and commercial rates will end but increases will be confined to the rate of inflation. There will be no water charges introduced during the four-year budget period.

Government-owned assets, such as car parks, will be sold off to raise money. The highly profitable Belfast Harbour will be expected to contribute £35m. Another £80m will be sought from the coffers of Housing Associations. A plastic bags levy is expected to raise £4m a year - a highly ambitious target.

After a public consultation phase, Assembly members will vote of these budget plans.