The UK Government has confirmed the City Deal for Derry and Strabane Council will proceed, just one day after NI Secretary said funding would be paused ahead of the Spending Review.
In a statement to the Belfast Telegraph, a spokesperson for the Government said the deal for Derry and Strabane was an “advanced stage”.
“We understand the importance of the Derry City and Strabane Deal, which is at a very advanced stage,” they said.
“The UK government is committed to continuing to work closely with the Northern Ireland Executive on this Deal, to enable it to deliver growth and opportunity.”
In a statement on social media, First Minister Michelle O’Neill said: “The Derry and Strabane City Deal will go ahead.
“I have spoken with the British Secretary of State and urged the same approach should be taken with the other city & growth deals, and projects like Casement Park.
“These will be major economic boosters for our local economy and should go ahead.”
In a separate post, Finance Minister Caoimhe Archibald said she had received confirmation the deal for the area would still proceed.
“Confirmation tonight that Derry & Strabane City & Growth Deal WILL go ahead & deal signing hopefully take place as planned this week,” she posted on X, formerly Twitter.
“I am continuing to press for the other deals, these are game-changers for regions across the north, creating jobs & boosting local economies.”
On Friday afternoon, Stormont’s leaders hit out after the Government confirmed it would be pausing funding on City Deals in Northern Ireland.
The deals relate to a package of extra funding worth over £1bn and decision-making powers negotiated between central Government and local councils.
There are currently four in Northern Ireland. These are the Belfast Region City Deal, the Derry City & Strabane District Council City Deal, the Causeway Coast & Glens Growth Deal and the Mid South West Growth Deal.
City and Growth Deals are aimed at helping to harness additional investment, create new and higher-paid jobs, attract and retain talent and speed up inclusive economic growth at a local level with projects developed within each separate deal.
Particularly criticism was levelled at the pausing of the Derry and Strabane City Deal as the council was set to hold an event to mark it next week.
Earlier today, a spokesperson for the UK Government told the Belfast Telegraph: “We are facing the challenge of a £22 billion black hole in the public finances that we have inherited.
“The UK Government continues to work closely with Deal partners and the Northern Ireland Executive on the City and Growth Deals programme.”
SDLP leader Colum Eastwood also welcomed the news funding for the area would not be paused.
“Since the announcement that funding for our City Deals was to be ‘paused’, I have engaged with senior British Government Ministers in the Treasury and the Northern Ireland Office to make the case for continued investment in the four regions,” he said.
“I am glad that we have made progress over the last 24 hours and have received confirmation that the Derry City Deal will continue as planned.
“This is a good start and we have more work to do. Derry and the North West, in particular, needs this level of capital investment to kickstart our ambitions for greater regional balance and progress higher education provision. It should never have been placed in doubt.”