Scale and purpose of the Fund
NIO states that responses to this consultation will inform the development of a new model for local growth funding, which the draft plan describes as being focused on targeted, long‑term interventions to support sustainable economic growth.
As part of the 2025 Spending Review, the Ministry of Housing, Communities and Local Government (MHCLG) has allocated £43 million per annum for the Local Growth Fund in Northern Ireland for the period 2026–29.
This equates to:
- £129 million over three years (2026–29), averaging £43 million per year
- Funding split between:
- Capital (CDEL) – infrastructure, buildings, digital investment, transport and workspace
- Resource (RDEL) – employability programmes, training, business advice and wrap‑around support
The consultation does not seek views on the overall size of the fund. Instead focusing on how the funding should be allocated and delivered.
What the consultation is seeking views on
The NIO is seeking views on:
- How capital funding for 2026/27 should be allocated; and
- How capital and resource funding should be allocated for the remainder of the Spending Review period (2027–2029).
Two core priorities are proposed for the fund:
- Enhancing productivity (42% of funding)
- Promoting active participation in the workforce (58% of funding)
The consultation is open to any individual or organisation, including community and voluntary organisations, social enterprises and infrastructure bodies.
You can read more about the consultation and how to respond here: Northern Ireland Local Growth Fund Consultation - GOV.UK
A Section 75 Equality Screening Form has also been published alongside the consultation.
NICVA Engagement on the Consultation
The transition to the Local Growth Fund has already had huge impacts for the voluntary and community sector and the people it supports, with a 64% reduction in previous levels of economic inactivity investment from 1 April dramatically reducing the scale and range of services and supports the sector is able to provide with widespread consequences for organisations, staff and service users.
As we look towards programme delivery beyond March 2027, it is critical that the voice of the sector - and the communities it supports - is clearly heard as part of this consultation.
To support engagement NICVA, in partnership with network organisations across the sector, will be hosting a number of engagement sessions during the consultation period. These sessions will give organisations the opportunity to:
- Share views directly with representatives from the Northern Ireland Office (NIO)
- Discuss the proposed investment priorities and how the programme is to be delivered
- Help inform NICVA’s response to the consultation
NICVA Engagement Session with the NIO
NICVA will host an online engagement session with senior Northern Ireland Office representatives on Monday 15 June 2026, from 12pm–1pm to discuss the proposed Local Growth Fund Investment Plan for 2026–29.
Organisations can find full details and register to attend here: NICVA Engagement Session with the NIO: The Future of Local Growth Fund Investment in NI(2026–2029)
