Stormont ministers have outlined the spending plans for a £39 million UK government growth fund, detailing allocations for innovation, business start-ups, social enterprises, and infrastructure projects across Northern Ireland. The Local Growth Fund, which replaces previous EU funding streams, has been divided into nearly £12 million for day-to-day spending and £27.4 million designated for capital projects.
The largest portion of the capital investment, £13 million, will be directed to the Department for the Economy. Economy Minister Caoimhe Archibald stated this funding will support projects targeting innovation, business start-ups, and social enterprises. Within this, Invest Northern Ireland is set to receive £7.1 million for business innovation projects and early-stage design work for its Mandeville industrial estate in Craigavon.
Other departmental allocations include £7 million to the Department for Communities for initiatives such as town centre renewal and the regeneration of vacant properties. The Department of Agriculture will receive £3.8 million to support innovation and sustainability in the agricultural sector. Additionally, £3.2 million has been allocated to the Department for Infrastructure for investments in transport and connectivity improvements.
Finance Minister John O'Dowd commented that the fund would deliver "tangible benefits." However, he also expressed criticism regarding the administration of the fund by the British government, stating it created a situation "far from ideal." O'Dowd emphasized his continued advocacy for future funding priorities to be determined by locally elected ministers rather than Westminster.
While the capital investment is acknowledged as welcome, East Londonderry assembly member Claire Sugden noted that it does not compensate for the loss of funding experienced by community organizations. Sugden highlighted that "resource funding pays the staff who support vulnerable people, run employability programmes, tackle isolation and help families through difficult circumstances." She warned that without adequate resource funding, services could be reduced, experienced staff might be lost, and individuals would have fewer support options.