Politics

City Deals: Handling of paused funding deals ‘abysmal’, Stormont opposition leader says

Clarification is being sought by Executive ministers after an announcement concerning the pausing of four deals worth a total of £1.7 billion

SDLP MLA Matthew O’Toole
SDLP MLA Matthew O’Toole (Liam McBurney/PA)

The handling of the paused City and Growth deals has been described as “abysmal” by the SDLP’s Stormont leader.

Clarification is being sought by Executive ministers after an announcement on Friday concerning the pausing of four deals worth a total of £1.7 billion to the whole of Northern Ireland.

The deals are bespoke funding arrangements between the Treasury, the Stormont Executive and local partners, with four arrangements for the Belfast City region, Derry City and Strabane, Mid South West region, and Causeway Coast and Glens. The funding is to go towards a number of projects which will create jobs and drive economic investment.

Stormont ministers had initially been informed of the potential pause of funding on Wednesday, before a meeting with the UK chancellor on Thursday and officially being told of the decision on Friday. The First and Deputy First Ministers initially described it as “deplorable” and “reprehensible”.

However, by Saturday DFM Emma Little-Pengelly posted on social media platform X to say she had received “clarity” from the NIO that the Greater Belfast City Deal and North West City Deal would be “unaffected” by the pause.

Posting on social media site X, the SDLP’s Matthew O’Toole said the confusion over the funding deals has been badly handled.

“Abysmally handled by the UK Gov and an illustration of why the status quo doesn’t work,” Mr O’Toole said.



“But Executive ministers were in the Treasury on Thursday, knew about it before but didn’t mention it in public until it blew up. Now they’re claiming credit for fixing it.”

Speaking on BBC’s Sunday Politics, Stormont Finance Minister Caoimhe Archibald said she had received assurances from Secretary of State Hilary Benn on Saturday that the Derry and Strabane deal was to go ahead, just a day after the pause was announced, while she added it was her understanding the Belfast deal would be unaffected.

“I think that this was a hugely concerning announcement, it was news that we got on Wednesday afternooon before we were meeting with the Treasury,” Ms Archibald said.

“I raised it with the chancellor on Thursday and was advised to engage with the chief secretary to the Treasury which I did and asked for an urgent call, a call I haven’t yet had which is deeply disappointing.

“They went ahead and announced on Friday afternoon that the pause was happening to Deal partners, causing huge concern right across the North.

“As it stands we had communication last night, I spoke to the secretary of state that the Derry and Strabane deal will be going ahead and the deal signing that was scheduled to take place this week will hopefully go ahead this week.

“We need to see the same happening for the other deals, for Causeway Coast and Glens and for Mid South West. The funding commitment on those needs to be unpaused as well.”

Secretary of State Hilary Benn said on Saturday he looked forward to signing the Derry and Strabane Deal this week, but has not commented on funding for the other the agreements.