UK government working with NI executive on City Deals

The UK government has said "it continues to work closely" with the Stormont Executive on City Deals.

It comes after it paused funding for the deals ahead of the UK spending review.

That provoked outrage among Northern Ireland leaders with First Minister Michelle O'Neill describing the move as "deplorable".

A government spokesperson added: ‘We are facing the challenge of a £22bn black hole in the public finances that we have inherited."

City Deals are regeneration funding packages worth more than £1.5bn with about £600m coming from central government.

It is understood the pause has happened in the context of the spending review meaning the government does not want to commit funds to any new projects before that process is completed in October.

That means the deals could be un-paused then, although Stormont ministers want that to happen immediately.

There are four deals in Northern Ireland: the Belfast City region, Derry City and Strabane, Mid South West region, and Causeway Coast and Glens.

O'Neill called the UK government's approach "extremely short-sighted" and said it was "crucial" they continued as planned.

Deputy First Minister Emma Little-Pengelly said the "dire consequences" of the move had been spelt out during a meeting with the Chancellor on Thursday.

Stormont's Finance Minister Caoimhe Archibald said she has written to the Treasury "calling on them to immediately reverse this reprehensible decision".

She pointed out that it has come "less than a week before the scheduled signing of the Derry City and Strabane Deal".

The Belfast deal was first announced in 2019 and was formally signed off in December 2021.

At the time it was hailed as a "once-in-a-generation opportunity" which could create about 20,000 jobs over 10 to 15 years.

The Belfast deal is not just limited to the city itself but is funding projects stretching from the north of County Antrim down to County Armagh.

It was also the furthest advanced in terms of the progress of construction on capital projects.

A Belfast City Council spokesperson said the council "has not received any formal correspondence at this stage and is seeking clarification in relation to the potential implications of this pause".

A portion of the money expected from the unsigned Derry City and Strabane deal has been earmarked to help fund the medical school in Derry.

The £300m deal also involves plans to redevelop Strabane town centre; establish a DNA museum in Derry and open a centre for innovation in data analytics, advanced manufacturing and robotics.

Mid and East Antrim Borough Council said it was "extremely disappointed" by the pause as "extensive work has already been undertaken" to advance the Ballymena hub, Gobbins cliff path extension and Carrickfergus regeneration.