NI public service gets extra £2bn in Budget

Almost £2 billion sterling in additional funds is to be pumped into Northern Ireland's budget to improve roads, schools, hospitals…

Almost £2 billion sterling in additional funds is to be pumped into Northern Ireland's budget to improve roads, schools, hospitals and water, it was announced today.

In what was being billed as a "the most momentous budget in a generation," Northern Ireland Office Finance Minister Mr Ian Pearson said £2 billion (€3.19 billion) over the next five years would be raised to tackle the North's crumbling infrastructure.

Households will face new water charges as a result of the Reform and Reinvestment deal struck by devolved ministers with Chancellor Gordon Brown this year.

Mr Pearson said the cash injection will help direct rule ministers, and a devolved administration if it returns, to embark on programmes they would otherwise have put on hold.

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The Government will repay some of the loans through industrial derating and rates on a vacant properties.