Painful budget needs prompt response from Executive

David McNarry, Ulster Unionist Party Spokesperson for Finance and Personnel has given his initial reaction to the Chancellor's budget describing it as 'painful' and warranting 'a prompt response from the Northern Ireland Executive'.

In a statement Mr. McNarry said:

"We now have a clear indication of the extent of the cuts that we are facing. In order to get the national debt under control the Chancellor has announced a further £17bn's worth of cuts in departmental spending by 2014/15, with unprotected departments facing an average cut of around 25%. In total, compared with Labour plans, the government will cut an additional £30bn a year. This will unfortunately mean cuts for Northern Ireland via the Barnett formula.

"The Northern Ireland Executive must now agree an immediate framework on how they are going to approach these reductions in a manner that protects frontline services and jobs. Although we do not have all the details yet, we must begin to plan immediately. The Executive must make a statement on the budget - they cannot continue with a 'head in the sand' mentality - this means the DUP and Sinn Fein finally showing some leadership.

"The rise in VAT is going to hit consumer spending as a necessity to fill the hole left in the public finances by Labour. This is why the Chancellor calls his Budget action unavoidable.

"In light of the proposals to freeze public sector pay for two years, Sammy Wilson must immediately bring forward a paper to the Executive on public sector pay in Northern Ireland - a department by department approach is not the answer.

"This Budget develops the coalition Government's policy of rebalancing the UK's economy. As the squeeze on public spending begins the importance of growing our private sector will be vital. I welcome the commitment that the Chancellor made to produce a paper on rebalancing the Northern Ireland Economy. The Executive must put forward a compelling case for the needs of Northern Ireland's private sector especially in light of our border with a Euro Zone country. We must make sure that the Secretary of State for Northern Ireland is fully aware of what our economy needs. This Budget is geared towards rebalancing the economy and we must ensure we get the most out of what is on offer.

"There is a need for a responsible and workmanlike response to this Budget from the five parties in our Executive. I note and welcome the fact that Health was ring fenced in England and Wales - we must do the same.

"The DUP and the other Northern Ireland parties were impotent on the backbenches of Westminster today. However, they can no longer afford to be incompetent in their roles at the Executive table - it is time for the DUP and Sinn Fein to step up to the mark.