Danny Alexander says we can borrow less now and more later for A5

The move comes as a legal challenge to the proposed massive road project means that for each month of delay there will be around £10 million of capital funding made surplus. If this isn’t spent, it will have to be given back to the Treasury.

Mr Wilson explained: “At this stage in the financial year the key risk that I have to manage is the risk that unspent resources might have to be returned to HM Treasury.

“In this current financial year a major concern in relation to spending profiles is the ongoing delay to the A5 road scheme. Members will be aware that for each month of delay there will be around £10 million of capital funding made surplus.”

He said this would normally need to be spent in this financial year to avoid this funding going back to HM Treasury.

“Since the remaining amounts involved are very significant - potentially up to £50 million - I recently put a proposal to the Chief Secretary to the Treasury which sought some additional flexibility in terms of our RRI borrowing facility,” he stated.

“I am pleased to say that the Chief Secretary has now agreed my proposal.

“This means that the Executive can now choose to borrow up to £50 million less in this financial year, against an equal increase in borrowing in 2014-15 when this A5 funding is likely to be needed.

“This also means that the funding to take forward the A5 road scheme remains secure,” concluded Mr Wilson.