Projects left in limbo as UK Government pauses city deals

The news is particularly of interest to the Newry, Mourne and Down area where a number of key projects are being part-funded by 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.

The BRCD had been set to contribute £8m to the Newry City Centre Regeneration Project, which includes the proposed civic hub and the theatre complex, £93.4m to the Southern Relief Road and also £30m to to the Mournes Gateway Project.

The implications for these projects are not clear. Newry, Mourne and Down District Council has been asked for an update.

In a statement on Friday afternoon, First Minister Michelle O’Neill said: “The decision to pause funding for City and Growth Deals is unacceptable and deplorable, and I would urge the British Government to urgently reconsider.

“This approach is extremely short-sighted. These City and Growth Deals will be game-changers for the regeneration of our cities and towns, and a catalyst for economic growth and creating good jobs. It’s crucial that they continue as planned.”

Deputy First Minister Emma Little-Pengelly added: “Officials were informed of this potential direction of travel on Wednesday. We raised this during a meeting with the Chancellor in London on Thursday, spelling out the dire consequences such a decision would have and urged for a reconsideration.

“Departments and Deal Partners will be urgently assessing what this pause means for the City and Growth Deals projects moving forward. There will be much detail to work out, but we will do that as a matter of urgency, alongside all relevant partners.”

Finance Minister Dr Caoimhe Archibald said: “Following yesterday’s meeting with the Chancellor I wrote to the Treasury calling on them to immediately reverse this reprehensible decision, which comes less than a week before the scheduled signing of the Derry City and Strabane Deal.

“I urged the British government to provide space for proper political engagement to get to a positive outcome and a commitment to go ahead with the deal.

“Instead they have chosen to proceed to pause their funding commitments.

“The British government have said it’s attempting to reset relationships, instead they have acted in very bad faith.

“I am calling on them to step up and honour the commitments and pledges made on City Deals, where significant plans and contracts have already been put in place at significant cost to local councils, project promoters, the Civil Service and Whitehall Departments.”