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Irish Post
7 days ago
- Business
- Irish Post
Northern Ireland to receive half a billion pound investment as part of Britain's 'plan for change'
NORTHERN IRELAND is set for a major economic boost as British Chancellor Rachel Reeves visits Belfast to confirm more than half a billion pounds in public and private investment. The funding, aimed at strengthening the region's long-term economic prospects, is part of the British government's broader 'Plan for Change' strategy. At the heart of the announcement is £310 million in fresh funding for Northern Ireland's City and Growth Deals, allocated to support key high-growth sectors such as advanced manufacturing, digital innovation and the creative industries. Speaking during a visit to Studio Ulster, Reeves said the new investment was about 'fixing the foundations' for a more prosperous future. She praised Northern Ireland's 'talent and ambition', citing its leadership in areas like film production and defence technology. The Chancellor also unveiled £137 million in new funding to address issues related to terrorism, paramilitary activity and organised crime. Officials say the aim is to create safer communities while encouraging further economic investment by removing barriers to growth. In a major vote of confidence from the private sector, defence firm Thales confirmed a £100 million expansion at its Castlereagh site, which is expected to create up to 200 new jobs. The company already employs around 900 people in the region, with the government's broader commitment to increasing defence spending expected to further cement Northern Ireland's role in the industry. Reeves' visit comes on the back of the largest funding package for the Northern Ireland Executive in real terms since the 1998 Belfast Agreement. The settlement, which averages £19.3 billion annually until 2029, is designed to help stabilise public services and support ongoing economic development. The Secretary of State for Northern Ireland, Hilary Benn, highlighted the region's potential for growth, particularly given its access to both UK and EU markets. He said the government remained committed to backing Northern Ireland through a mix of targeted investment and broader economic strategy. Additional support is being directed toward innovation-led growth. Belfast and Derry are set to share at least £30 million under the new Local Innovation Partnerships Fund, a £500 million British and Northern Irish initiative designed to empower regional leaders to develop local solutions for economic challenges. Northern Ireland will also benefit from increased aerospace and research funding, supporting thousands of jobs across both sectors. Studio Ulster's Chief Executive, Professor Declan Keeney, said the investment was a vital recognition of the studio's role in attracting global productions and training local talent. Ulster University's Vice-Chancellor, Professor Paul Bartholomew, described the development as a symbol of what's possible when government, industry and education collaborate effectively. Thales British Managing Director for Integrated Airspace Protection Systems, Nigel MacVean, also hailed the defence investment as a foundation for growth, saying it would help accelerate innovation and expand the company's reach both within the Northern Ireland, Britain and globally. See More: Northern Ireland, Rachel Reeves, Studio Ulster, Thales
Belfast Telegraph
12-08-2025
- Business
- Belfast Telegraph
‘Right and fair' to end inheritance tax exemption for farms, says Chancellor on Belfast visit
And she told Belfast Telegraph that decisions including making inheritance tax payable by farmers had been 'right and fair' and ensured the tax burden for 'ordinary working people' did not go up. The Chancellor visited Ulster University facility Studio Ulster in Belfast this morning, before another stop later at defence manufacturer Thales in the east of the city. The government said her visit was to confirm investments which would 'fix the foundations for long-term prosperity'. One investment was the 'largest real-terms settlement for the Northern Ireland Executive since the Belfast Agreement, averaging £19.3bn per year until 2029'. Those include £310m 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. Her visit to Thales will mark £100m new private sector investment from Thales, supporting expansion and up to 200 new jobs in the defence sector. And she'll also confirm £137m in new funding to tackle paramilitarism and organised crime, removing barriers to investment and growth. Her decision in the Autumn Budget last year to remove an exemption from inheritance tax for agricultural property from April next year was met with vocal opposition by farmers in Northern Ireland. Asked on Tuesday morning if she had any sympathy for farming families now facing inheritance tax and if she would go back on the changes, she said: 'Last year at the Budget I had to raise significant sums of money to put our public finances back on a firm footing but also to put that record investment into our NHS and also to provide that record settlement for the NI Executive, the biggest real-terms settlement since the Good Friday Agreement, and that money is only available because of the decisions that we took in the Budget last year. 'But they were the right and the fair decisions. We didn't increase the taxes that ordinary working people paid. Their national insurance, income tax, Vat, fuel duty did not go up in the way that the previous Tory government had in their plans, so protecting the incomes of ordinary working people and since we came into office, real wages have been rising at a faster rate than inflation.' She added: 'Specifically on agricultural property relief, if you've got agricultural property worth less than £3m and you own it jointly with a partner, you'll pay no inheritance tax when you pay that farm on. Belfast History Explained: Who was Mary Ann McCracken? 'But I do believe that if you do have agricultural property worth more than £3m you should make a contribution but the inheritance tax on that is half the rate that anybody else pays, just 20%, and it's payable over 10 years interest-free, so I do think that fits the required balance, we needed to raise money to invest in public services. "If people disagree with those tax changes, they either need to admit that they're not willing to put the money into our public services and that settlement for the NI Executive or that they would increase taxes elsewhere, for example on ordinary working people. "Those weren't my choices, I made my choices and I'm very happy to defend them.'
