Northern Ireland investment boost

Northern Ireland is set to benefit from a new package of investment aimed at underpinning long-term economic growth, with £310 million in additional UK Government funding confirmed for City and Growth Deals alongside further commitments in defence, creative industries and community safety.

The Chancellor’s visit to Belfast marked the allocation of funding announced in June’s Spending Review, with the £310 million intended to strengthen high-growth sectors through locally led growth deals across the region. Alongside this, £137 million of new investment will target paramilitarism and organised crime, removing barriers to inward investment and creating conditions for sustainable economic development.

Private sector expansion is also being unlocked, with Thales confirming a £100 million investment in its Castlereagh operations that will create up to 200 skilled roles. This follows the company’s significant contribution to the defence supply chain in Northern Ireland, where around 900 jobs are already supported by UK defence spending. The expansion includes the opening of a third facility, underpinning both local manufacturing capacity and the UK’s wider security commitments.

The Chancellor highlighted the creative industries as another growth area, visiting Studio Ulster, a £72 million production facility developed with Ulster University. Supported by £25.2 million through the Belfast City Region Deal, the site underlines Northern Ireland’s position as a hub for screen production and digital innovation, with the potential to attract international investment and expand local skills.

The government has also confirmed the largest real-terms settlement for the Northern Ireland Executive since the Belfast Agreement, averaging £19.3 billion annually until 2029. This settlement is intended to give the Executive long-term fiscal certainty while supporting strategic priorities across infrastructure, innovation and public services.

Secretary of State for Northern Ireland Hilary Benn noted the region’s established strengths in advanced manufacturing, cyber, defence and creative industries, adding that with continued investment and access to EU markets, Northern Ireland is well placed to expand its role in the UK’s industrial and innovation strategy.

The package sits within the government’s wider Plan for Change, which includes new funding streams for public service reform and integrated education. Belfast and Derry-Londonderry are also set to benefit from the £500 million Local Innovation Partnerships Fund, with at least £30 million directed to locally led projects designed to stimulate R&D and economic growth.

For contractors, suppliers and investors, the measures represent a coordinated effort to secure long-term foundations for prosperity, combining infrastructure-led growth with support for innovation, high-value industries and a safer operating environment.

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