Any tax increase must be 'fair and progressive'

Stormont's finance minister, John O'Dowd, said any increase in taxes needed to be "fair and progressive"

Any increase in taxes announced in the government's budget this month should "fall on those with the broadest shoulders", Stormont's finance minister has said.

The Chancellor Rachel Reeves has refused to rule out rises, saying she will make the "necessary choices" in her upcoming Budget on 26 November.

Labour had pledged in its general election manifesto not to hike income tax, VAT or National Insurance.

John O'Dowd said he had "listened carefully" to Reeves' speech on Tuesday, which paves the way for such tax hikes later this month.

"The question that hasn't been answered thus far is who is that tax burden going to fall on," he told assembly members (MLAs) at Stormont.

The minister said any increase in taxes needed to be "fair and progressive" and ultimately be invested in public services.

O'Dowd was also asked by Ulster Unionist Steve Aiken if he would commit to "ringfence" any additional funding for Northern Ireland in the Budget towards this year's pay deal for health workers.

Last month, the executive said it had agreed £100m for this year's award, but Health Minister Mike Nesbitt still needs to find the remaining £100m required.

Money for 'frontline services'

Health unions have been engaged in discussions about potential strike action if a resolution is not found to pay the money soon.

Stormont's major source of funds is the "block grant" it receives from the Treasury every year.

Increases to the block grant are worked out using the population-based Barnett formula.

Additional spending on public services in England means an equivalent amount is added to Stormont's budget, but it is up to the executive to decide where that money is spent.

O'Dowd said the executive had already made commitments on health pay, and said he wanted to ensure any tax rises announced in the budget lead to using that money for "frontline services".