Millions of pounds in town deal money suspended

Funding that was earmarked for the regeneration of Londonderry and Coleraine was suspended by the government over the summer.

In April 2024,it was announced in the budgetthat Derry and Coleraine would receive £20m each, over 10 years as part of the UK Government's Towns Fund.

Typically money from that fund is set aside to be spent over a decade and involves the establishment of a "Town Board" made up of local authorities, the local MP and other community leaders.

Derry City and Strabane District Council and Causeway Coast and Glens Council say they were told of the decision to suspend that funding on the 19 July by the new Labour government, two weeks after the General Election.

The decision to suspend the towns' fund came ahead of the government also announcing it was to suspend four city and growth deals.

The Derry and Belfast deals were ultimately progressed with uncertainty remaining over the Mid South West region, and Causeway Coast and Glens deals.

Both council areas say they were told of the Towns Fund decision by the Minister for Local Growth, Alex Norris MP.

A spokesperson for Derry City and Strabane District Council said: "The council has progressed with the establishment of a co-design approach to managing the fund with the nomination of co-chairs and drafting a partnership arrangement for the Town Board.

"The council waits for further details on next steps and confirmation of the revised timelines. It is assumed that further information will become available after the Autumn statement."

A statement posted by Causeway Coast and Glens says the council is waiting on further updates from the government before any further action is taken in relation to the Coleraine Future Town Fund.

A Ministry of Housing, Communities and Local Government spokesperson says a number of regions have been asking about the funding and "further details would be set out in due course".

The Secretary of State for Northern Ireland, Hilary Benn MP, said both deals are crucial to promoting economic growth.

He said: "The government are facing a £22bn black hole in the public finances that we have inherited from the last Government, and we have to review existing commitments in the run-up to the budget on the 30 October."

Benn said he will continue to work closely with the deal partners "to ensure Northern Ireland has the tools needed to drive growth”.