As the Chancellor set out in July, the Government have inherited a £22 billion black hole in the public finances. As a result, the Treasury is having to consider a range of measures to deal with this significant problem. Last month, the Treasury informed the Northern Ireland Department of Finance that the UK Government’s contributions to the Mid South West deal and the Causeway Coast and Glens deal would now be considered as part of the spending review. The Belfast regional city deal and the Derry/Londonderry and Strabane city deal are unaffected and proceeding as planned. Since the announcement of the pause on those two deals, I have met with the First Minister, the Deputy First Minister, the Chief Secretary to the Treasury and the Northern Ireland Finance Minister. I will also be meeting the chief executives of those two deals shortly.
Everyone in Northern Ireland understands the importance of the city deals to economic growth and encouraging investment, and this Government are committed to working with the Northern Ireland Executive and businesses to make the most of the huge economic opportunities that now lie ahead. That is shown by the progress being made on the Belfast region city deal and the Derry/Londonderry and Strabane city deal. I attended the Derry/Londonderry and Strabane city deal signing on 18 September. The UK Government’s £105 million investment will help to progress transformative innovation, digital and health projects, which will build on the region’s well-established research excellence. The Chancellor will set out the results of the first phase of the spending review on 30 October, which will include an update on the two outstanding city deals.