Context

As an Executive, the majority of the funding we rely on to develop the region's infrastructure comes from the UK Government in the form of the annual 'Block Grant'. The outcome of the Coalition Government's cuts means that, over the next four years, the amount we receive through the Block Grant is planned to fall by over 34% between 2010-11 and 2014-15. This is a major concern to us, particularly in light of commitments given pursuant to the St. Andrews Agreement. The downturn in private sector construction demand is already negatively impacting on this key sector of our local economy - and a reduction now in public works would compound the situation. For these reasons, we will continue to press for all the resources we believe necessary to support this Investment Strategy. However, whilst we may not be able to achieve the record levels of capital investment achieved in the last three years - some £1.6bn to £1.7bn in each year - the levels of investment the Executive has been able to commit in the Budget up to 2015 remain high, reaching £1.5 billion in 2014-15.