Ministers ‘gravely concerned’ at City Deal funding pause

THE First Minister has said she is ‘gravely concerned’ on the pausing of City and Growth Deals funding by UK Government

Executive Ministers have spoken of their grave concern at the decision by the UK Government to pause City and Growth Deals until the Spending Review.

£103m of the money is earmarked to pay for a complete overhaul of Strabane town centre, with a new health hub to be established at the old ‘tech’ site on the Derry Road, alongside a leisure centre and an education centre. A footbridge linking the bus station to Lower Main Street is also on the cards.

The First Minister Michelle O’Neill has described the pausing of the deal as ‘unacceptable and deplorable’. and asked the UK Government to reverse their decision.

The First Minister 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