Select committee: Northern Ireland Affairs Committee
Conclusion 12
4th Report – Economic growth in Northern Ireland: new and emerging sectors
Published 23 Mar 2026
Addressed to Northern Ireland Executive; Northern Ireland Office
Northern Ireland Affairs Committee Economic growth in Northern Ireland: new and emerging sectors All items in this report Report on parliament.uk ↗ Inquiry on parliament.uk ↗
Conclusion (the committee's words)
Tackling economic inactivity is one of the keys to economic growth. In Northern Ireland, this has been carried out largely by the community and voluntary sector using revenue funding. Under the forthcoming Local Growth Fund, the proportion of revenue funding will be severely curtailed due to a new 70–30 capital-revenue split. In our correspondence with the Government and in oral evidence from the NIO, we have not been given a justifiable reason for this new arrangement. We are concerned about the knock-on effect this will have on NI’s justice, social services and health systems. We are frustrated by the Government’s lack of movement on this issue, and believe the NIO has a duty to advocate better for organisations delivering economic activity programmes in NI. We are disappointed at the way the sector has been treated and the position in which organisations and recipients have been placed. This makes us question the effectiveness of the NIO in voicing the concerns of Northern Ireland in Whitehall. (Conclusion, Paragraph 72)
From: Northern Ireland Affairs Committee, 4th Report – Economic growth in Northern Ireland: new and emerging sectors (HC 1193), 23 March 2026
Government response
The government responded to the whole report on 25 June 2026 (deadline 23 May 2026).
Summary written by Accountability Index from the government's response. It is not the government's own words.The Government 'welcomes the Committee's report' and sets out its initial response to each recommendation, agreeing on closer working with the Northern Ireland Executive while not accepting some proposals, including the economic vision forecasts and a change to the Local Growth Fund split.
- On the NIO economic vision, the Government 'shares the Committee’s view' on close collaboration with the Executive. It has 'noted' the suggestion of forecasts for additional growth, employment and productivity but 'does not believe this is realistic'.
- On a Northern Ireland seat on the Industrial Strategy Advisory Council, the Government is 'currently considering' how Northern Ireland voices can be more clearly heard in national policy structures. It does not state a decision.
- On the one stop shop for SMEs, the Government says it is 'fully committed' to the service, with a £16.6 million budget. It states it expects the service to go live 'within this financial year, as scheduled'.
- On the Local Growth Fund capital-revenue split, the Government states 'the split will not change'. It points to £11.8 million of resource funding in 2026/27 and PEACEPLUS options for the sector.