Auditor: City Deal projects must be accelerated to avoid real term losses of £37m a year
Approximately £1.3bn in funding through City and Growth Deals has the potential to bring major benefits to the North, but only if decisive action is taken to accelerate delivery and ensure value for money.
That is the conclusion of a new report from the Comptroller and Auditor General.
Dorinnia Carville’s report on Northern Ireland City and Growth Deals examined how economically funds have been utilised to date, and how efficiently and effectively Deal projects have progressed.
The report concludes that, while there is evidence of constructive and evolving collaboration across the Deals, overall progress has been slower than originally anticipated.
At March 2026, £1.2 billion of central government funding (out of a total £1.3 billion) remained unspent, with only a small number of projects operational.
The report estimates that, assuming a three per cent annual rate of inflation, the real terms value of funding is being reduced by around £37 million for each year of delay.
Similarly, a funding timeframe of 15 years for the delivery of Deals (effective from when Deals are signed) is not currently being formally recognised and managed as a strategic risk, despite a potential risk to funding if delivery does not accelerate.
Benchmarking against other regions suggests that the North has progressed more slowly than in other jurisdictions.
Important areas for improvement are also highlighted. There is limited evidence that delivery costs are being fully captured, or that value for money is being properly documented and examined beyond approval at the business case stage.
The report concludes that, given the scale of cost escalations and delays across the Deals, these weaknesses are limiting transparency and assurance.
Commenting on the report’s findings, Ms. Carville said: “City and Growth Deals represent a positive example of collaboration between central and local government, and I warmly welcome the evidence of constructive engagement noted in today’s report.
"At the same time, progress remains slow, with much of the available funds remaining unutilised. Continued delays are eroding the value of this potentially transformative investment.
“With only a small number of projects operational, it is not yet possible to provide a proper assessment of long-term outcomes. However, there are already weaknesses in arrangements for capturing costs and ensuring value for money.
"Without decisive action to address these issues, there is a risk that potential benefits will not be maximised. Given the significant public investment committed, my Office will continue to closely monitor both the ongoing delivery of City and Growth Deals, and the action taken in response to the recommendations made in today’s report.”
The Derry and Strabane Region City Deal was officially signed in September 2024.
Over £300m has been allocated to the North West under the deal for a range of innovation, digital, health, regeneration, tourism and renewal projects.
When it was signed almost two years ago the Executive said it had the potential to create 6,300 new jobs by 2033.
Major projects included within the Derry City Deal are North Atlantic (DNA) Museum at Ebrington, the School of Medicine at Magee and Derry’s Central Riverfront Project.