The government will press ahead with Northern Ireland’s cities and growth deal, chancellor Rachel Reeves has said.

Funding for the Causeway Coast and Mid South West businesses was “paused” last month during a pre-Budget spending review.

The chancellor confirmed the investment plans would go ahead when she delivered her budget – the first autumn statement from a Labor government in 14 years.

She also announced that the Northern Ireland Executive will receive an additional £1.5 billion in funding next year as a result of her Budget.

It consists of £1.2 billion for day-to-day spending and £270 million for infrastructure investment.

The Government is also providing £45.8m in additional policing and security spending and £730,000 to support schools as they work towards integrated status.

Stormont’s finance department is expected to provide its analysis of the figures later.

What are city deals?

Delivering his Budget in the Commons, Reeves said: “To support growth, including in our rural areas, we will continue with City and Growth Deals in Northern Ireland – in the Causeway Coast and the Glens and the Mid South West.”

City deals – also known as growth deals in more rural areas – are funding packages for regeneration worth more than £1.5bn, with around £600m from central government.

There are four offers in Northern Ireland: Belfast City Region, Derry City and Strabane, Mid South West Region and Causeway Coast and Glens.

Stormont Finance Minister Caoimhe Archibald said it was “very welcome news” that the funding freeze had now been lifted for the Causeway and Mid South West growth deals.

“These deals are an important driver for increasing economic development and delivering regional balance and I am pleased that sense has prevailed,” she said.

The funding break provoked outrage among Northern Ireland leaders last month with Prime Minister Michelle O’Neill describing the move at the time as “deplorable”.

The Labor government later said it would “continue to work closely” with the Stormont Executive on the deals.

More than expected for Stormont?

As for the extra £1.5bn for Stormont, the Chancellor of the Exchequer previously said she expected a much lower funding increase of around £500m.

It is not uncommon for the Ministry of Finance and the devolved administrations to disagree about the true impact of a budget.

There is also a significant increase in funding for the Northern Ireland Office, the UK department responsible for non-devolved matters in NI.

Its budget will increase from £52m this year to £62.3m next year.

The Treasury said this reflects funding required for the Omagh bombing inquiry, the Pat Finucane inquiry and other legacy matters.

Must start “as soon as possible”

In a joint statement, teams working on the Mid South West region and Causeway Coast and Glens businesses welcomed the fact that the Chancellor has lifted the break.

“This is a very positive result which means we can move forward with the development of our key innovation, green energy and decarbonisation projects designed to boost the economy of these regions,” they said.

The proposed projects include a £22 million Center for Food and Drug Discovery (CFDD) in the Causeway Coast and Glens Borough Council area.

Among the plans for the Mid South West region is the creation of a packaging automation innovation center for agri-food robotics.

The two teams said the deals have “the potential to create millions of pounds in return investment as well as thousands of jobs in these areas.”

Professor Liam Maguire is Pro-Vice-Chancellor for Research at Ulster University and sits on the board of three of the four deals.

To talk to BBC Radio Ulster’s program Good Morning Ulsterhe said these city deals would “enhance economic growth and productivity”.

“These are really strong investment projects in local regions, and projects that have been decided by the local regions based on the strengths within those regions.

“It’s certainly in line with what the government currently wants to do, so we would certainly hope that they can resume and work can restart and we can move forward with these projects as soon as we can,” Prof Maguire said.

Mid South West Governance Steering Group chairman Kevin Savage said the funding would be vital to the local economy.

“We’re talking about a £252m package from central government as well as the chief executive so we really need that £126m from Westminster to develop this, and it will benefit from additional funding from the private sector as well.

What is included in the plans?

Projects in the Causeway Coast and Glens business include:

Mid South West has not published an itemized list, but said its projects would focus on skills, innovation, infrastructure and the tourism economy.

“Quite difficult”

The chancellor announced an increase in the national minimum wage and the national living wage on Tuesday.

Steven Orr started his bagel business with his wife Kirsty about three years ago during the pandemic.

They just opened their first store in Belfast city center last week.

Mr. Orr is concerned that the announcement could affect his employment plans.

He said: “For most people in the hospitality industry staff costs are the biggest cost. Rent and electricity are big but staff costs are the single biggest cost we pay.

“For a lot of us, we’ll either not hire new people, or try to do more in less time with the people we have, which is always quite difficult when you’re busy anyway.”

‘It’s hard’

Mr Orr added: “We’re right next to the university here, we have a lot of student workers so lowering the threshold means what might have been a nice part-time student, the costs just go up to employ these people.” Mr Orr added.

He does not think that employers should bear the burden for the need for increased tax revenue.

“Over the last few years everyone has referred to the cost of living crisis, but it feels more like the cost crisis because it’s the businesses that have the increased wages, the electricity on the commercial side went up so much more than the residential side, every ingredient went up.

“Then people complain when you have to raise your prices.

“It’s hard – we’ve just known that times are hard for the last three years.”