Northern Ireland

Stormont to honour funding pledges for all four City and Growth deals

Stormont backing for the Mid South West and Causeway Coast and Glens deals had been in doubt after a funding pause from Westminster

An 88-page draft programme for government has been published by the Stormont Executive
The Stormont Executive will keep their funding commitments for all four City and Growth deals, with the hopes that Westminster will end a funding pause. (Steve Parsons/PA)
By Allan Preston

STORMONT will honour multi-million funding pledges for all four City and Growth deals in Northern Ireland, the Irish News has learned.

Worth £1.7bn, the four deals are bespoke funding arrangements between the Treasury, Stormont and local partners.

Last month, there was an outcry after the Labour government paused its contribution until a spending review at the end of October.

Shortly afterwards, the Executive said the Belfast City Deal and North West City deal were unaffected.

Now, it is understood the Executive will meet its funding pledge for the remaining two - Causeway Coast and Glens and Mid South West areas.

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This is worth £162m capital funding for the two remaining growth deals and a £100m complementary fund.

It is hoped this will put pressure on Labour to release the full amount for the City and Growth Deals.

On Monday, the Executive reaffirmed a commitment to fund the A4 Enniskillen Bypass that was agreed in February.

In addition, the £43m funding commitment to the A29 Cookstown Bypass within the Mid South West Growth deal is also secure.

The Executive had agreed the move recommended by Sinn Féin’s Finance Minister Caoimhe Archibald on Wednesday – with Growth Deal councils informed on Friday that “the Executive contributions to your deals are secure”.

On Thursday it is also understood Ms Archibald raised the Growth Deals with the Chief Secretary to the Treasury, Darren Jones.

It is expected that the Northern Ireland secretary Hilary Benn will meet Mr Jones to discuss the issue this week.

Kevin Savage is chair of the Mid South West Governance Steering Group and called the news “hugely reassuring”.

“Our growth deal is vital to boosting economic performance and it will provide the platform to support many of our businesses adapt to the challenges and opportunities from the need to be more innovative, environmentally and economically sustainable,” he said.

“We need all the promised funding to fully deliver transformational change and we now look to the UK Government with the simple message, lift the pause on our growth and recommit to supporting us now.”

Causeway Coast and Glens Borough Council’s Chief Executive David Jackson said: “We welcome the support of the Northern Ireland Executive in standing by its commitment to the growth deals and we now ask the UK Government to live up to the commitment that it made in signing our Heads of Terms Agreement in April to help to deliver a fundamental change to Causeway Coast and Glens economy.

“The UK Government money will be invested in two of the council area’s largest innovation projects, which will increase skills and employability, create high value jobs and attract foreign direct investment, and will complement the NI Executive funded projects focused on regeneration and improved tourist infrastructure.”

He added: “These projects will not only benefit Northern Ireland but also strengthen the UK’s reputation as a global leader in innovation and so we call on the Government to lift the pause on our growth and allocate the money in the Autumn Budget.”

On Monday, Stormont Infrastructure Minister John O’Dowd confirmed that construction for the Enniskillen bypass could proceed as planned in 2025.

“Earlier this year the Executive committed £16.2m of capital funding to the Enniskillen Bypass scheme alongside the approved early release of £12.5m from the Executive’s contribution to the Mid South West Growth Deal,” he said.

“Since then, my officials have been working diligently to progress this significant scheme with a view to construction starting in 2025. Recently a shortlist of contractors was invited to bid for the scheme’s construction contract.

“I know there had been some concern from people in Enniskillen that the scheme might be impacted by the decision of the UK Government to pause the Mid South West Growth Deal.

“I am pleased to be able to give reassurance that the Executive has confirmed the full cost of the scheme will be met from Executive funding and it can proceed to construction next year as originally planned.”