Source · Select Committees · Northern Ireland Affairs Committee
Recommendation 1
1
Acknowledged
Paragraph: 14
NI received proportionally less than Scotland, Wales and England in the first round of levelling...
Recommendation
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 pleased to see the Government’s resolve to address some of these issues through this funding scheme. However, we urge the Government to pursue further means of collaboration and engagement with the Executive, when formed, on the delivery of these funds. This would ensure the money is in line with the Executive’s economic priorities, and that investments are economically efficient for both the taxpayer and Northern Ireland’s economy. Consideration should also be given to transferring more control over these funds to the NI Executive.
Government Response Summary
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 stakeholders and are keen to increase collaboration.
Paragraph Reference:
14
Government Response
Acknowledged
HM Government
Acknowledged
The Levelling Up Fund is one mechanism for the delivery of Levelling Up and should be seen alongside other interventions. At least £800 million has been set aside for Scotland, Wales and Northern Ireland across the lifetime of the Fund and at least 3% of total UK allocations across the first two rounds has been set aside for Northern Ireland, subject to receiving sufficient high-quality bids. The first round of the Levelling Up Fund saw every bid on the Northern Ireland shortlist selected to prioritise a strong allocation for Northern Ireland, with the exception of two bids that were ruled out due to deliverability concerns. As a result, the first round of the Levelling Up Fund saw 2.9% of the total allocation go to projects in Northern Ireland. However, the number of bids received was disappointing and following this, officials from the Northern Ireland Area Team of the Department for Levelling Up, Housing and Communities engaged extensively with relevant stakeholders across all sectors, including Northern Ireland Executive Departments, to promote Round 2 of the Levelling Up Fund. This included Northern Ireland Executive Departments, local councils, the community and voluntary sector, and the private sector, and reached over 500 direct contacts. As a further support, the Department created technical webinars tailored to Northern Ireland to assist applicants through the application process. In addition, financial support has been provided to all local authorities in Northern Ireland to support them in making applications to the Fund. Northern Ireland Executive Departments were given the opportunity to comment on bids at assessment stage in both rounds of the Fund, with an increase in data and information provided this year, to make sure bids align with devolved policies and strategies. In the absence of the Northern Ireland Executive, Departmental officials provided input on the selection of bids from the shortlist, in line with the role offered to the devolved governments in Scotland and Wales. In Round 2, 10 projects have been successful, to the value of £71 million. These are: Project Amount Ballycastle Leisure Centre £8.1m £8.1m Belfast International Airport Decarbonisation Project £2.3m Camlough Lake Recreation Centre £2.8m Carnfunnock Country Park £6.1m F.E. McWilliam Gallery & Studio Extension and Alterations £3.6m Lakeland, Enniskillen £20m Maghera Regeneration Project £9.1m Marine Gardens Public Realm Project, Bangor £9.8m Northern Ireland’s Last Picturehouse, An Arts Centre for Belfast £4.1 Ulster Rugby Club Capital Improvement Project £5.1m The total value of Rounds 1 and 2 of the Levelling Up Fund awarded to Northern Ireland is £119.8m, which is 3.16% of the Fund. Across Rounds 1 and 2, Northern Ireland received £63 per capita of funding, compared with £64 for Scotland. This is more than the funding for London, the South East, East England, Yorkshire and Humber, and the West Midlands. The UK Government will continue to prioritize a fair deal for all parts of the UK in theallocation of Levelling Up Funds. As a further investment in the Northern Ireland economy, in the Autumn Statement 2022, the Chancellor announced a fund of up to £2million specifically for the Department for International Trade (DIT) to work with local partners, including Invest NI, to host a trade and investment conference event in Northern Ireland in 2023. This will showcase Northern Ireland as an attractive and vibrant place to do business and help drive new mobile investment into its economy. DIT will lead delivery of this event, with partners in Northern Ireland, to help attract international investment and showcase Northern Ireland internationally. The event, in celebration of the 25th Anniversary for the Belfast Good Friday Agreement (BGFA), aims to celebrate the economic strengths, and maximise the economic and trade growth potential of NI. Ensuring a strong international dimension will be key, including opportunity for engagement and involvement from all signatories to the BGFA including USA and Ireland. DIT is consulting local partners, stakeholders, and industry to define the event and identify contributions for deliverables and with an aim to have options by mid-February.