Chancellor confirms landmark investment to fix the foundations for Northern Ireland’s future prosperity

Northern Ireland is set for a transformative boost as Chancellor Rachel Reeves visits Belfast to confirm a package of investments designed to fix the foundations for long-term prosperity. The Chancellor’s visit marks a major milestone in delivering the Government’s Plan for Change, with new funding targeted at the sectors driving Northern Ireland’s future: creative industries, defence, and safer communities.

Headline investments confirmed today include:

• £310 million in new UK Government funding for Northern Ireland’s City and Growth Deals, confirmed in June’s Spending Review and now allocated to support high-growth sectors.
• £137 million in new funding to tackle paramilitarism and organised crime, removing barriers to investment and growth.
• £100 million new private sector investment from Thales, supporting expansion and up to 200 new jobs in the defence sector.
• The largest real-terms settlement for the Northern Ireland Executive since the Belfast Agreement, averaging £19.3 billion per year until 2029.

During her visit to Studio Ulster – home to the world’s most advanced virtual production studio – the Chancellor celebrated Northern Ireland’s creative sector, which is benefiting from £25.2 million of UK Government investment through the Belfast City Region Deal. This investment underpins Northern Ireland’s reputation as a global leader in film, TV, and digital innovation, supporting high-value, high-skill jobs and attracting international productions such as Game of Thrones and Line of Duty.

Chancellor, Rachel Reeves said:

Northern Ireland is brimming with talent and ambition, from cutting-edge film studios to world-class defence manufacturing. Today’s investments are about fixing the foundations for future prosperity – backing the sectors that will create good jobs, drive economic growth, and allow communities to thrive.

This is a turning point. Every pound we invest here supports good jobs, strengthens our economy, and boosts the United Kingdom’s standing on the world stage, with Northern Ireland at its heart.

Later today, the Chancellor will visit Thales’ Castlereagh site, where she will highlight the defence sector’s role in supporting Ukraine and strengthening the UK’s security. Thales’ £100 million expansion will open a third facility and create up to 200 new jobs, adding to the 900 skilled roles already supported by UK Government defence spending in Northern Ireland. The government’s commitment to increase defence spending to 2.6% of GDP will further secure the region’s place at the heart of the UK’s industrial future.

Secretary of State for Northern Ireland, Hilary Benn said:

With world-class strengths including in advanced manufacturing, cyber, defence and the creative industries, and access to the EU market, Northern Ireland is perfectly placed to seize the opportunities ahead.

That is why we are committed to supporting Northern Ireland to fulfil its potential through the City and Growth Deals, our Industrial Strategy, local growth funding and the record settlement for the Executive of £19.3 billion per year, which is the largest in the history of devolution.

Northern Ireland will also benefit from increased UK-wide research and development and aerospace funding, supporting 21,000 R&D jobs and 5,000 in aerospace.

Recently, the UK Government announced that Belfast and Derry-Londonderry will receive at least £30m to unlock new, locally-led innovation through the new Local Innovation Partnerships Fund. The £500m fund will empower local leaders, making the most of communities’ expertise to grow the economy.

What’s new:

• £310 million for City and Growth Deals is new funding confirmed in the June Spending Review and now allocated for delivery.
• £137 million to combat terrorism, paramilitarism and organised crime, is new investment.
• Other commitments, including £185 million for public service transformation and £2 million for integrated education, were previously set out and are now being delivered as part of the Plan for Change.

Professor Declan Keeney, Chief Executive of Studio Ulster, said:

Studio Ulster, as a globally unique facility, stands at the frontier of world-class storytelling and future-facing innovation. The UK Government’s significant investment and today’s visit together recognise the critical role this facility plays in boosting local skills, attracting international investment, and expanding economic opportunity for communities across Northern Ireland.

Professor Paul Bartholomew, Vice-Chancellor of Ulster University, said:

This is more than a studio. It’s a symbol of what’s possible when partnerships come together across government, industry and education. With such continuing commitment to the City and Growth Deals, together we can continue to deliver impactful projects that connect innovation to opportunity.

Nigel MacVean, Managing Director, Integrated Air-space Protection Systems (IAS) of Thales in the UK, said:

I welcome the news of this increase in defence spending. The support for highly skilled jobs within the defence sector will help to empower us to accelerate innovation, expand our reach, and deliver even greater value to our customers and partners, both in the UK and with our internationally. We remain committed to driving excellence and making a meaningful impact with this strengthened foundation.

More information

• The Belfast City Region Deal is one of four Northern Ireland City and Growth Deals receiving a share of the £310 million new funding.
• Studio Ulster is a landmark £72 million virtual production complex developed by Ulster University, underpinning Northern Ireland’s position as a global leader in screen innovation and creative economy growth.
• CoSTAR Screen Lab at Studio Ulster is part of a £75 million UKRI network driving innovation in gaming, TV, film, and digital entertainment.
• The largest real-terms settlement for the Northern Ireland Executive since the Belfast Agreement averages £19.3 billion per year until 2029.