Council and Chamber relieved as City Deal funding ‘secured’

On Friday it was feared that the plug would be pulled on a number of key projects in the Newry area, including the Newry City Centre Regeneration project and the Southern Relief Road, which are being part-funded as part of the Belfast Region City Deal (BRCD).

It was signed in 2021 with the UK Government and NI Executive each committing £350 million and partners a further £150 million.

However, following much outcry from politicians here and local business groups, Stormont's Finance Minister Caoimhe Archibald said regeneration funding packages in Derry and Belfast were expected to go ahead - leaving Mid South West and Causeway Coast and Glens under threat.

Newry, Mourne and Down District Council, one of the BRCD partners, said they welcomed clarification received from the Department of Finance, following communication between the NI Secretary of State and HM Treasury.

“The City and Growth Deal projects are critical to Northern Ireland’s long-term economic growth, regeneration and transformation, supporting both inclusive growth and our competitiveness on a global stage,” a spokesperson said.

"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.

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

The statement added that the BRCD was “the result of a strong and established partnership” and is now well into delivery phase, with 15 Outline Business Cases approved, 12 legally executed Contracts for Funding signed totalling approximately £600m, 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 statement continued.

“The Belfast Region City Deal is already creating more and better jobs in our centres of excellence, leveraging additional external funding, supporting the delivery of crucial skills pipelines and developing inclusive growth and social value. Our Deal will create a wide range of opportunities for local SMEs, innovators and entrepreneurs to deliver inclusive innovation and to address regional challenges including sustainability, resilience and net-zero, as well as the health and wellbeing of our communities.

“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.”

A sigh of relief was also being exhaled by Newry Chamber of Commerce of Trade. Chamber President, Edwina Flynn, spoke after the Chamber met with the Council’s Chief Executive, Marie Ward and Director of Economic Development, Conor Mallon on Monday afternoon.

She said the Chamber had been “assured that the BRCD funding for the Newry, Mourne and Down projects has been secured”.

The Chamber President added: “When the announcement was made by the UK Government on Friday evening the Chamber sought immediate clarification given that we were aware that the BRCD was already at an advanced stage with contracts awarded and 'pausing' it did not make economic sense. Thankfully, we have received clarity and the deals that underpin the economic regeneration of our city and wider district continue at pace.

"What did come from the UK Government's poor handling of this issue is a stark sense of how much this city and district could have lost. We are due to receive over £200 million of the £1 billion BRCD funding and if this had been lost then our city's transformational projects including Newry City Park could have been significantly stalled or jeopardised.

"We have written to the Secretary of State and will meet with him soon to express our disappointment at how this was handled and we will work to ensure any short-term damage in investor confidence is repaired.”

"Newry Chamber now firmly believes that we need to get on with delivering all the regeneration schemes across the city and district including the vital Southern Relief Road and the Council-backed Newry Regeneration Schemes.

“It is abundantly clear that money is scarce in the UK Treasury and will be for some years to come, so it is imperative that we get on with maximising the opportunity that has been presented to Greater Newry and transform our city."