Select Committee · Northern Ireland Affairs Committee

Investment in Northern Ireland

Status: Closed Opened: 9 Nov 2021 Closed: 12 Oct 2023 12 recommendations 1 report

The Committee are assessing the economic effectiveness of UK Government policy to deliver investment in Northern Ireland. The inquiry looks at how these programmes may address long-standing economic issues in the region, and what further steps can be taken to stimulate investment, including foreign direct investment, in Northern Ireland. Read the inquiry launch and terms …

Reports

1 report
Title HC No. Published Items Response
First Report - Investment in Northern Ireland HC 85 8 Nov 2022 12 Responded

Recommendations & Conclusions

12 items
1 Recommendation First Report - Investment in Northern I… Acknowledged

NI received proportionally less than Scotland, Wales and England in the first round of levelling...

NI received proportionally less than Scotland, Wales and England in the first round of levelling up. There has been no satisfactory explanation from Government for this under allocation. This should be rectified urgently. The Levelling Up Fund White Paper acknowledged long-standing under-investment and economic challenges in Northern Ireland. We are …

Government response. The government states that the first round of the Levelling Up Fund saw every bid on the Northern Ireland shortlist selected, with the exception of two bids that were ruled out due to deliverability concerns. Officials have engaged extensively with …
Northern Ireland Office
2 Recommendation First Report - Investment in Northern I… Accepted

We note the Government’s intention to ensure that the UK Shared Prosperity Fund and funding...

We note the Government’s intention to ensure that the UK Shared Prosperity Fund and funding from the Multiply scheme match by 2024–25 the level allocated under the European ‘Structural Funds’ (ESF and ERDF). Service providers need certainty, however, and therefore the Government must set out the amount of SPF and …

Government response. DLUHC officials have engaged extensively across sectors in Northern Ireland to seek input into the UKSPF Northern Ireland Investment Plan. The plan sets out the amount of UKSPF funding, including Multiply, that has been indicatively allocated to interventions in Northern …
Northern Ireland Office
3 Recommendation First Report - Investment in Northern I… Accepted in Part

We acknowledge the interest that the Government will have in the allocation of funding and...

We acknowledge the interest that the Government will have in the allocation of funding and the delivery of Shared Prosperity Fund projects in all parts of the UK, including Northern Ireland. We are pleased, however, to see that Whitehall has begun to engage with Northern Ireland through the UKSPF Northern …

Government response. The government states that the UKSPF Northern Ireland Partnership Group has concluded its initial work, and they are reviewing its remit and membership for the delivery phase, including the possible establishment of thematic sub-groups. They will offer Northern Ireland Civil …
Northern Ireland Office
4 Recommendation First Report - Investment in Northern I… Acknowledged

We are encouraged by the progress of the Belfast Region City Deal under this funding...

We are encouraged by the progress of the Belfast Region City Deal under this funding scheme. However, the Government must now set out how it plans to provide ongoing support, including day to day resourcing, to current and future projects. We also ask the Government to set out what plans …

Government response. The Government is continuing to provide support to ensure the successful delivery of all four Northern Ireland City and Growth Deals, including regular discussions with the Deals and ongoing engagement through governance structures such as the City and Growth Deal …
Northern Ireland Office
5 Recommendation First Report - Investment in Northern I… Accepted

The commitment to funding under the New Decade New Approach agreement was instrumental in: re-establishing...

The commitment to funding under the New Decade New Approach agreement was instrumental in: re-establishing the Executive in 2020; the allocation of funding for health workers’ pay and public services and securing the Executive’s finances on a sustainable footing. The extent to which NDNA has turbocharged infrastructure investment is, however, …

Government response. The government states that the Northern Ireland Office already reports on the implementation of NDNA funding through a Written Ministerial Statement published every six months, detailing financial commitments.
Northern Ireland Office
6 Recommendation First Report - Investment in Northern I… Accepted

We urge the Government to publish up to date information on the delivery of the...

We urge the Government to publish up to date information on the delivery of the New Deal for Northern Ireland funding package. We also encourage the Government to ensure that this funding is ringfenced, so it can be used to fulfil its intended aims, and that any underspend should be …

Government response. The government confirms that New Deal funding provided to Northern Ireland Executive Departments and UK Government Departments will be ringfenced. They note that nearly half of the £400 million has been allocated, including £23 million for the Department for the …
Northern Ireland Office
7 Recommendation First Report - Investment in Northern I… Accepted

We are pleased with the Government’s decision to set up a new DIT hub in...

We are pleased with the Government’s decision to set up a new DIT hub in Belfast and we acknowledge the economic benefits this could bring to Northern Ireland. However, we urge the Government to publish up to date information on the delivery of the Northern Ireland International Trade plan, the …

Government response. DIT established a trade and investment hub based in Belfast in March last year and recruitment is underway. The team is dedicated to ensuring that Northern Ireland businesses are aware of the support services available through DIT’s Export Strategy. At …
Northern Ireland Office
8 Recommendation First Report - Investment in Northern I… Accepted in Part

The Protocol means Northern Ireland occupies a unique position among the four nations of the...

The Protocol means Northern Ireland occupies a unique position among the four nations of the UK: with its feet in both the EU single and UK Internal Markets, it is attractive to some investors; while the bureaucracy involved in maintaining that stance may deter others - the two subsidy control …

Government response. The government acknowledges NI's unique position but states that separate explanatory memoranda specific to how trade agreements interact with the Protocol are unnecessary, and that all provisions of the UK’s free trade agreements co- exist with provisions within the Protocol. …
Northern Ireland Office
9 Recommendation First Report - Investment in Northern I… Acknowledged

The university cap leads many Northern Ireland students to leave to obtain high- level qualifications,...

The university cap leads many Northern Ireland students to leave to obtain high- level qualifications, which they then take into employment elsewhere in the UK or overseas. This places a handbrake on the Northern Ireland economy, with international and other firms either less willing to invest in the first place …

Government response. The government acknowledges the importance of addressing the cap on university numbers but redirects responsibility to the Northern Ireland Executive. They highlight existing investments in the Skill Up programme and ongoing discussions.
Northern Ireland Office
10 Recommendation First Report - Investment in Northern I… Acknowledged

We understand the importance of education and skills in growing Northern Ireland’s economy and providing...

We understand the importance of education and skills in growing Northern Ireland’s economy and providing jobs for people in all parts of society. Therefore, we recommend that current and future Government investment, through the UKSPF and City and Growth Deals for example, at least match existing EU funding in this …

Government response. The government states that skills and inclusive growth are key to City and Growth Deals in NI, and that 'People and Skills' is a core UKSPF investment priority, but does not commit to matching EU funding.
Northern Ireland Office
11 Recommendation First Report - Investment in Northern I… Accepted

We acknowledge the importance of building sustainable, viable industries to secure Northern Ireland’s economic future...

We acknowledge the importance of building sustainable, viable industries to secure Northern Ireland’s economic future in the net zero era. We ask the Government to set out its investment and policy plans for Northern Ireland to enable research into and the development of its green economy. We also recommend that …

Government response. The UK Government is committed to advancements in the green economy, in order to achieve Net Zero by 2050. The UK Hydrogen Strategy set out by the Department for Business, Energy and Industrial Strategy will grant almost £1 billion of …
Northern Ireland Office
12 Recommendation First Report - Investment in Northern I… Acknowledged

Functioning societies need people who have the skills to deliver services in all areas of...

Functioning societies need people who have the skills to deliver services in all areas of the economy. These people need to be paid competitively - and fairly. We acknowledge the importance of equal access to opportunities for men and women, and the negative socio-economic effect of existing gender disparities in …

Government response. The government states that local partners should shape the skills element of City or Growth Deals, but together with the Northern Ireland Executive departments, will support Deals to find complementarity with existing skills and training initiatives. It also mentions £15m …
Northern Ireland Office

Correspondence

2 letters
DateDirectionTitle
24 Mar 2023 Correspondence from the Secretary of State for Northern Ireland, related to Inv…
24 Mar 2023 Correspondence to the Secretary of State for Northern Ireland, related to Inves…