British government confirms Derry City Deal will go ahead as planned

The British government has confirmed the City Deal for Derry will go ahead as planned.

There was widespread shock on Friday after the government said that it would 'pause' funding for the North's four City Deal's, which includes Derry.

The signing of the £300 million City Deal for Derry is due to take place on Wednesday.

Writing on X one day after announcing the Deal would be paused, Secretary of State for Northern Ireland Hilary Benn said: "I look forward to signing the financial terms of the Derry City and Strabane Deal, which has been in development for so long, on behalf of the UK Government in the coming days."

“We understand the importance of the Derry City and Strabane Deal, which is at a very advanced stage,” a British government spokesperson said. "The UK government is committed to continuing to work closely with the Northern Ireland Executive on this Deal, to enable it to deliver growth and opportunity.”

Since the government's decision outgoing SDLP leader Colum Eastwood said he has been 'engaging intensively' with senior Cabinet Ministers in the Treasury and Northern Ireland Office over the weekend seeking urgent confirmation that funding for the City Deals will continue. 

The Foyle MP welcomed an initial commitment from the British government today to continue funding for the Derry City Deal.

Mr Eastwood said: “I am glad that we have made progress over the last 24 hours and have received confirmation that the Derry City Deal will continue as planned. 

“This is a good start and we have more work to do. Derry and the North West, in particular, needs this level of capital investment to kickstart our ambitions for greater regional balance and progress higher education provision.

"It should never have been placed in doubt.”

First Minister Michelle O’Neill posted on X that the Derry and Strabane deal would go ahead.

She said: “I have spoken with the British Secretary of State and urged the same approach should be taken with the other city & growth deals, and projects like Casement Park.

“These will be major economic boosters for our local economy and should go ahead.”

Local Sinn Féin councillor Sandra Duffy said confirmation that the City Deal will go ahead as planned will give clarity to those working to deliver vital regeneration projects.  

Cllr Sandra Duffy said: “This is a historic investment in this region and will be a game-changer for the regeneration of communities, creating good jobs and helping to strengthen the north west’s economy.

“The British Government must adopt a similar approach to all City and Growth Deals for communities across the north and immediately reverse the unacceptable decision to pause this funding.”