The Chancellor of the Exchequer, Rachel Reeves, has announced that the UK government will move forward with the city and growth deals for Northern Ireland. This decision comes after funding for the Causeway Coast and Mid South West deals was temporarily halted during a pre-budget review last month. In her budget speech, which marked the first Autumn Statement from a Labour government in 14 years, Reeves confirmed that these investment plans will proceed.

Additionally, she revealed that Northern Ireland’s Executive will receive an extra £1.5 billion next year from the budget, comprising £1.2 billion for daily operational expenses and £270 million earmarked for infrastructure projects. The government will also allocate £45.8 million to enhance police and security measures, along with £730,000 to assist schools aiming for integrated status.

During her address in the Commons, Reeves stated that to foster growth, particularly in rural areas, the government would advance City and Growth Deals for both the Causeway Coast and Glens as well as the Mid South West regions. These city deals represent substantial regeneration funding packages exceeding £1.5 billion, with around £600 million sourced from central government.

Northern Ireland features four such deals: one for the Belfast City region, another for Derry City and Strabane, plus those focusing on Mid South West and Causeway Coast and Glens. Stormont’s Finance Minister Caoimhe Archibald welcomed this news, emphasizing that lifting the funding pause is crucial for economic development and regional balance.

Last month’s temporary funding halt had sparked significant backlash from local leaders; First Minister Michelle O’Neill labeled it “deplorable.” Following this uproar, the Labour government committed to collaborating with the Stormont Executive regarding these deals.

The finance minister had initially anticipated a modest funding increase of around £500 million but was pleased with the larger allocation announced. Additionally, there is a notable increase in funding for the Northern Ireland Office, which is set to rise from £52 million to £62.3 million next year due to costs related to various inquiries.

Teams overseeing both regional deals expressed their satisfaction regarding the Chancellor’s decision to resume funding. They highlighted initiatives like a proposed £22 million centre for food and drug discovery in Causeway Coast and Glens and an agri-food robotics centre in Mid South West as key projects poised to generate significant economic returns and job creation.

Overall, stakeholders view these developments as essential steps towards enhancing local economies while addressing various pressing needs within their communities.