Levelling Up: £57m withheld from Northern Ireland due to Stormont collapse
- Published
Parliament Buildings, Stormont
More than £57m of funding from a UK government department is being withheld from Northern Ireland because of Stormont's collapse.
Three separate funding streams from the Department for Levelling Up are not being allocated.
Northern Ireland's Department of Finance said this was because of the absence of a power-sharing government.
It comes after Northern Ireland was not awarded any money from the latest £1bn tranche of the Levelling Up Fund.
Two other funding pots have also been frozen - elements of the UK Shared Prosperity Fund and the Long-Term Plan for Towns.
The Shared Prosperity Fund was created to replace EU funding that came to an end after Brexit, while the Long-Term Plan for Towns aims to support towns across the UK.
Overall the funding from the three sources is worth more than £57m, according to the Department of Finance.
This includes an estimated £30m from the Levelling Up Fund and £27m from part of the Shared Prosperity Fund.
The Long Term Plan for Towns provides a £20m "endowment-style fund" to towns identified as having particular needs, but towns have not been yet been identified in Northern Ireland for support.
Why is Northern Ireland not getting Levelling Up funds?
A Department of Finance spokeswoman said: "Three separate funds have been paused with the reason cited by Department for Levelling Up, Housing and Communities being the absence of the executive."
She said the department had worked with Levelling Up officials to ensure funding continued in the absence of an executive, and it is "seeking clarity" on the "change in approach".
The Department for Levelling Up was approached for comment.
Levelling Up is a regional development plan aimed at improving economic performance outside south-east England.
On Monday, the Department for Levelling Up announced £1bn of funding allocations from its fund, with 55 projects being supported across Great Britain.
It said no money was provided to Northern Ireland "at this time" because of the absence of Stormont's devolved government.
The Democratic Unionist Party (DUP) branded the move "economic blackmail".
It has been blocking a restoration of Northern Ireland's power-sharing institutions in protest against post-Brexit trade barriers between the region and Great Britain.
Northern Ireland Office Minister Steve Baker made his comments in the Commons
On Wednesday, Northern Ireland Office (NIO) minister Steve Baker said the funding, which has not been allocated due to Stormont's collapse, "will be spent in Northern Ireland".
But he said the government was "very keen indeed" to work with local ministers in a restored executive.
Separately, it was confirmed on Wednesday that £75m allocated to Northern Ireland from the Autumn Statement would be used to reduce a Stormont overspend rather than on public services.
The Department of Finance said it "continues to press the UK government for confirmation on the funding from unspent financial packages that will be used towards repayment".