Casement to get £50m from government in Spending Review

Jayne McCormack & John Campbell
BBC News NI
PA Media An aerial view of Casement Park, an empty football stadium, with housing developments in the surrounding areas. PA Media
The redevelopment of Casement Park is estimated to cost about £260m

The government is to make a financial contribution of £50m towards the redevelopment of Casement Park.

The move comes as part of the chancellor's Spending Review, which allocates money to day-to-day public services for the next three years.

Rebuilding the west Belfast stadium is estimated to cost about £260m - of which £120m is jointly in place from the Stormont Executive, the Irish government and the GAA.

The government's decision will be welcomed by the GAA and some political parties, but it still leaves a shortfall of about £90m.

How does Spending Review impact Casement Park?

The Spending Review directly affects what Stormont ministers have to spend on public services in Northern Ireland.

On Wednesday, Northern Ireland's Finance Minister John O'Dowd welcomed the government's contribution to the project and urged all involved to "now work together" in getting the stadium built.

The Stormont executive is contributing £62.5m towards the project, the GAA will pay £15m, while the Irish government has pledged about £43m.

The GAA has acknowledged it will need to increase its commitment.

Casement Park, with a proposed 34,500 capacity, had been earmarked to host football games at the Euro 2028 football tournament but, with the project on hold, the plan was shelved.

PA Media Rachel Reeves is smiling, with her eyes not looking directly at the camera. She is has brown hair with a fringe and is wearing a navy jacket and a necklace with two  circles. There are people sitting alongside her but they are mostly blurred as she is the focus.PA Media
Chancellor Rachel Reeves announced a financial contribution of £50m towards the redevelopment

Stormont's Communities Minister Gordon Lyons has defended his handling of the planned Casement redevelopment and insisted the hold-up was not his fault.

He has said the GAA will need to make its plans for the stadium more affordable if the government fails to cover the gap for the current proposed rebuild.

"What we do need to make sure is that any additional public funding that comes forward for sport is done on a fair and equitable basis," he said.

'Over to the GAA'

First Minister Michelle O'Neill welcomed the government funding and said it should act as a "springboard" to give momentum to ensure the stadium is developed.

She said it was a good news story and all the partners should now work together because "Casement Park will be built".

Deputy First Minister Emma Little Pengelly said it was now "over to the GAA" to deal with the funding shortfall.

She added that the executive funding commitment remains and she wants to "ensure fairness across all our sports".

Welcoming the news, Tánaiste (Irish deputy prime minister) Simon Harris said the Irish Government had long supported the redevelopment of Casement Park "as a landmark sports infrastructure project".

The GAA also welcomed the funding but its president Jarlath Burns said it was "not the final piece of jigsaw".

Mr Burns said there was "much more work to do", adding that the GAA will engage with the executive and the Department for Communities to ensure a full funding package is secured.

Mr Burns told Irish broadcaster RTÉ the cost of Casement is "really well over £270millon"

He added that "bearing in mind that the cost goes up by about £140,000 every month if we don't do anything because of the rising cost of infrastructure and building."

"Time literally is money here," he said.

The Secretary of State for Northern Ireland Hilary Benn said that while the last government "made wild promises" and "delivered nothing" when it came to Casement, this Labour government is making a "significant contribution".

He added that both Windsor Park and Ravenhill have "been done".

"Football and rugby, let's complete the third stadium,"

Analysis: Big gaps remain

Enda McClafferty, BBC News NI political editor

Another piece of the complex Casement jigsaw has fallen into place but big gaps remain to be filled.

Expect the focus now to fall on both the Stormont executive and GAA to see if the funding gap can be plugged.

Campaigners for the stadium argue the £62.5m pledged by the executive needs to be increased to reflect the rise in inflation and construction costs, which some have suggested could amount to an extra £20m.

There will likely be pushback from unionist ministers unless there is increased funding for other sports like football which was also promised extra cash for regional stadia back in 2011.

It was telling when asked about the shortfall today both the first and deputy first minister held different views.

Expect lots of difficult horse trading around the executive table now the British government has placed its offer on the table.

The GAA will also come under pressure. It has indicated that it will provide more than the £15m already promised but will it consider altering the design of the stadium to reduce costs?

Don't be surprised if we end up in another stand off with unionist ministers and the GAA refusing to put any new offers on the table first.

There is also the looming deadline as the planning permission for the stadium expires next summer.

IFA call for 'parity'

The Irish Football Association (IFA) has called for at least £50m to be given to the sport in line with the money pledged for the Casement Park redevelopment.

Chief executive Patrick Nelson welcomed the news but said parity for sports is needed.

Mr Nelson said football in Northern Ireland required £200m of capital investment in facilities.

Stormont budgets 'constrained' after Spending Review

O'Dowd warned Stormont budgets will remain "constrained" following the Spending Review.

He said: "It's clear that significant challenges remain for our public services."

He added that while Stormont would get additional funding, the 2026 financial year was looking particularly tight.

"This Spending Review has not provided the economic stimulus it could have," he said on Wednesday.

Treasury figures suggest Stormont's day-to-day spending power will increase by an average of 0.5% above inflation each year between 2026 and 2029.

Infrastructure spending is set to grow by an average of 0.7% above inflation in the same period.

PA Media John O'Dowd standing in front of a blue wall that sasy Northern Ireland Executive, he has white hair and is wearing a black suit with light blue shirt and red polka dot tiePA Media
The Finance Minister John O'Dowd has warned Stormont budgets will remain "constrained" in the aftermath of the Spending Review

O'Dowd said the position would have been worse without a funding top-up deal which was agreed last year and has now been extended.

It means that Stormont receives an additional 24p for every £1 which is allocated through the devolution funding formula.

There had been hopes that the size of the top up could be increased but that has not happened.

O'Dowd said the top-up would still be worth more than £1bn over the next five years.

"We've had some success, but I think the British government could have gone much further in terms of its public spending overall."

"Our slice of the cake is fairer than it was - but we need a larger cake."

There will now be further negotiations between the Treasury and the executive to finalise a "fiscal framework" for NI.

O'Dowd said those talks would include giving borrowing powers to the Housing Executive which would help increase social house building in NI.