Central Government capital investment of £1.3 billion through City and
Growth Deals has the potential to bring major benefits to Northern
Ireland, but only if decisive action is taken to accelerate delivery and
ensure value for money. That is the conclusion of a report published today by Northern Ireland’s Comptroller and Auditor General.
Dorinnia Carville’s report on Northern Ireland City and Growth Deals
assesses how economically funds have been utilised to date, and how
efficiently and effectively Deal projects have progressed. Introduced in
2018, the four Deals bring together the UK Government, NI Executive,
local government, and a range of other partners, to deliver major
investment aimed at transforming Northern Ireland’s economy and
regenerating communities.
Today’s report finds that, while there is evidence of constructive and
evolving collaboration across the Deals, overall progress has been slower
than originally anticipated. At March 2026, £1.2 billion of central
government funding (out of a total £1.3 billion) remained unspent, with
only a small number of projects operational. The report estimates that,
assuming a three per cent annual rate of inflation, the real terms value of
funding is being reduced by around £37 million for each year of delay.
Similarly, a funding timeframe of 15 years for the delivery of Deals
(effective from when Deals are signed) is not currently being formally
recognised and managed as a strategic risk, despite a potential risk to
funding if delivery does not accelerate. Benchmarking against other UK
regions suggests that Northern Ireland has progressed more slowly than
in other jurisdictions.
Important areas for improvement are also highlighted. There is limited
evidence that delivery costs are being fully captured, or that value for
money is being properly documented and examined beyond approval at
the business case stage. The report concludes that, given the scale of cost
escalations and delays across the Deals, these weaknesses are limiting
transparency and assurance.
Commenting on the report’s findings, Dorinnia Carville said:
“City and Growth Deals represent a positive example of collaboration
between central and local government, and I warmly welcome the
evidence of constructive engagement noted in today’s report. At the same
time, progress remains slow, with much of the available funds remaining
unutilised. Continued delays are eroding the value of this potentially
transformative investment.”
“With only a small number of projects operational, it is not yet possible to
provide a proper assessment of long-term outcomes. However, there are
already weaknesses in arrangements for capturing costs and ensuring
value for money. Without decisive action to address these issues, there is
a risk that potential benefits will not be maximised. Given the significant
public investment committed, my Office will continue to closely monitor
both the ongoing delivery of City and Growth Deals, and the action taken
in response to the recommendations made in today’s report.”
ENDS
