Councils to receive Regional Balance funding
In January 2025, the Department for the Economy (DfE) announced the allocation of a £45 million Regional Balance Fund over three years. The fund will be available to help form local economic partnerships (LEPs), which will be led by councils.
The Department states that the fund will be allocated using the following formula:
- 30 per cent allocated equally to all councils;
- 30 per cent based on productivity performance measured by output per job; and
- 40 per cent based on peripherality, based on small area classifications as per the OECD’s regional typology methods.
Councils such as Derry City and Strabane, classified as peripheral, will be entitled to funding of £1.72 million annually, totalling £5.15 million over three years – the highest allocation under the fund.
In contrast, more central areas like Antrim and Newtownabbey are set to receive £956,000 annually, amounting to £2.87 million over the same period.
The fund’s objectives align with the broader Sub-Regional Economic Plan, which prioritises enhanced productivity, job creation, and balanced regional development. LEPs are expected to collaborate with local businesses, educational institutions, and government agencies to develop targeted strategies that reflect the unique economic characteristics of each area.
Invest NI will play a key role in supporting LEPs, with plans to increase staffing in regional offices by 40 per cent to improve outreach and provide tailored business support. This enhanced capacity aims to strengthen local supply chains and foster innovation in high-potential sectors.
The Regional Balance Fund reflects a strategic commitment to addressing longstanding economic imbalances in Northern Ireland. By empowering local councils and targeting funding based on economic need and geographical context, the fund aims to create a more resilient and inclusive regional economy.
When the funding was announced, then-Minister for the Economy Conor Murphy said: “This £45 million investment over the next three years underscores our commitment to addressing regional disparities and empowering local councils to drive economic growth tailored to their unique challenges and opportunities.”
