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Belfast City Deal 'could transform economy' - but funding falls £100m short

Belfast City Council is among six local authorities in the consortium allocation funding of £350 million in the Budget
Belfast City Council is among six local authorities in the consortium allocation funding of £350 million in the Budget Belfast City Council is among six local authorities in the consortium allocation funding of £350 million in the Budget
By Gary McDonald Business Editor

FUNDING for the north's first-ever City Deal was formally allocated by the Chancellor - but came in £100 million shy of what was widely anticipated.

None of the six Belfast Region City Deal partner councils wouldn't publicly say so, but privately there was some disappointment that the cheque will be for just £350m and not the projected £450m.

But it is still a greater per capita spend than other city deals, and over its 10-year life span, will create 20,000 jobs, boost innovation in growth sectors like advanced manufacturing, digital development, life sciences and the creative industries.

The government’s cash commitment - which will be equalled by matched funding from the six councils involved - should also give confidence to other similar proposed growth deals in the north west, which could play a big role in attracting investment and talent to Northern Ireland.

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The six Belfast Region City Deal (BRCD) partner councils - Antrim and Newtownabbey Borough Council, Ards and North Down Borough Council, Belfast City Council, Lisburn and Castlereagh City Council, Mid and East Antrim Borough Council, and Newry and Down District Council - have already committed £100 million investment, while another £50 million is coming from Queen’s University and Ulster University.

These growth deals have already had a transformative impact on the economies of several regions in Britain, and as they are effectively steered at a local council level, in Northern Ireland they will not be dependent on a functioning Stormont Executive.

In the wake of the £350m Treasury allocation, a heads of agreement document will be signed by the Secretary of State and BRCD partners in the next few weeks, which will allow full business plans to be prepared for the projects proposed under the scheme.

Despite the shortfall in predicted government funding, there was widespread welcome for the Chancellor’s commitment to a Belfast Region City Deal.

"This is a once-in-a-generation opportunity for Northern Ireland to tackle fundamental structural problems and will provide a platform to deliver inclusive growth, reduce economic inactivity and enhance productivity," NI Chamber of Commerce chief executive Ann McGregor said.

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