Finance minister blasts Government’s ‘deplorable’ handling of city deals funding

A British Government move to pause funding commitments to city deals for Northern Ireland is “deplorable” and “appalling”, the Finance minister has said.

Caoimhe Archibald told MLAs she was “frustrated” and “angry” at the Treasury’s “short-sighted” and “shambolic” handling of the issue.

The whole of Northern Ireland is covered by four city and growth deals worth a total of £1.7 billion.

A Westminster Government decision to pause funding until its upcoming spending review was met by widespread anger from local politicians when it was announced late on Friday.

Over the weekend it was clarified that two of the deals – Belfast regions, and Londonderry City and Strabane – will not be affected by the suspension.

However, uncertainty still surrounds the future of the deals for Causeway Coast and Glens and Mid South West.

The deals, which advance investment and infrastructure projects in specific areas, involve bespoke funding arrangements between the Treasury, the Stormont Executive and local partners.

The Belfast regions deal has already been signed by the Government and the Derry/Strabane deal is set to be signed this week.

The other two deals are not as far forward in development.

In an update to the Assembly, Ms Archibald told MLAs the pause on the two deals must be lifted “immediately”.

“The British Government pledged £617 million for four deals across the north, on the basis that the Executive would match fund this investment,” she added.

“We did that and added another £100 million to the pot, with a £717 million contribution. Local councils and deal partners then also added significant funding to the overall investment, seen as a catalyst for local economic growth.

“Over 60 projects are currently being developed, which will be delivered across the four deals, covering every council area. This substantial capital investment, and the numerous projects in development, will be truly transformative for local regions and for the north as a whole.”

Ms Archibald said she became aware of the suspension move last Wednesday and, during a pre-scheduled meeting with Chancellor Rachel Reeves the following day, she, First Minister Michelle O’Neill and deputy First Minister Emma Little Pengelly outlined the “dire” consequences of the decision and urged the Government to reconsider.

The Finance minister said that on the advice of the Chancellor she requested an “urgent call” with the Chief Secretary to the Treasury, Darren Jones.

She told the Assembly that, as of Monday afternoon, he had not responded to that request.

The minister said she had hoped the Government would have provided “space” for engagement on the move but instead the Northern Ireland Office pressed ahead with the suspension announcement on Friday.

“This reprehensible decision came less than a week before the scheduled signing of the Derry City and Strabane deal,” she said.

“The Derry and Strabane deal signing event was called off shortly afterwards.

“Thankfully, common sense prevailed with the British Government coming to the right decision late on Saturday evening, which has now enabled the Derry City and Strabane District Council city deal signing to go ahead as planned on Wednesday.”

She added: “While some level of common sense has prevailed, we are now faced with the incomprehensible decision to treat the deals differently. I am clear there can be no disparity of approach.

“This approach could undermine the momentum and confidence of deal partners in the Causeway Coast and Glens and Mid South West growth deals, who have put so much time and effort into developing the many projects.

“I am very frustrated and angry by the handling of the matter by the British Government. The lack of information and formal communication to both departments and deal partners is totally unacceptable and is not how I would expect people to do business.

“If the British Government is serious about resetting relationships, then they must seriously reflect on this shambolic episode, put an end to this appalling behaviour.

“It is completely unfair that Causeway Coast and Glens and Mid South West growth deals should have to wait until the spending review for clarity. The British Government must immediately lift the pause on the Causeway Coast and Glens and Mid South West growth deals.

“It is time for a reset of their reset.

“These city and growth deals will be game-changers for our cities and towns, and a catalyst to boost economic development and create good jobs. It’s crucial that all deals continue as planned.

“I will continue to impress upon the Chief Secretary to the Treasury that the British Government must honour the commitments and pledges made to city and growth deals which will be transformative for our cities and towns and regions, bringing hope and prosperity right across the north, for our citizens, communities, businesses and future generations.”

In a statement on Monday evening, partners in the Belfast deal welcomed clarification from the Department of Finance.

“The Belfast Region City Deal partners welcome the positive news that the Derry City and Strabane District Council City Deal will be signed on Wednesday of this week and look forward to working with our colleagues to ensure that together, we achieve the maximum positive impacts from this regional investment,” they said.

“We also wish to state our very clear support for our colleagues in the Mid-South West Growth Deal and the Causeway Coast & Glens Growth Deal, and urge the UK Government to lift the pause on commitments relating to those deals. Together, the four deals offer significant growth potential for Northern Ireland as a whole.

“The Belfast Region City Deal – the result of a strong and established partnership – is now well into delivery phase, with 15 outline business cases approved, 12 legally executed contracts for funding signed totalling approximately £600 million, 15 ICT contracts awarded, two projects in construction and a number of projects already in operation. It is a delivery vehicle which is clearly fit for purpose.

“The Belfast Region City Deal partners remain focused on fully implementing our deal and on maximising the wide range of benefits this investment will bring to our region and the people who live here.”