Committee publication · Special Report · 25 June 2026 · HC 465
1st Special Report – Economic growth in Northern Ireland: new and emerging sectors: Government Response
From: Northern Ireland Affairs Committee
Inquiry: Economic growth in Northern Ireland: new and emerging sectors
Summary
This is the UK Government's formal response to the Northern Ireland Affairs Committee's March 2026 report on economic growth in Northern Ireland's emerging sectors. The Government accepts the Committee's broad diagnosis of Northern Ireland's economic potential—dual UK-EU market access, skilled workforce, competitive sectors—but partially accepts or deflects many specific recommendations, particularly around funding splits, SME support mechanisms, and devolved policy coordination.
Key findings
- Government establishes Northern Ireland Growth Coordination Group (chaired by Dr Julie Harrison) to align UK and devolved economic policies across Industrial Strategy, life sciences, and advanced manufacturing.
- Government rejects Committee's call for SMART-targeted economic vision with quantified growth/employment forecasts, claiming unrealistic given variable impacts.
- Government commits £16.6m (Budget 2025) to 'One Stop Shop' for SME regulatory support on East-West trade, targeting operational launch within 2026–27 financial year.
- Government defends 70–30 capital-revenue split for new Local Growth Fund against Committee criticism, citing mitigations (£11m added via Pride in Place flexibility); offers PEACEPLUS alternative funding streams but no reversal.
- Government acknowledges devolved gaps in planning, skills, energy, and infrastructure but frames these as Northern Ireland Executive responsibility while coordinating through various working groups.
Government position
Partially accepts. Government welcomes Committee's economic growth focus and accepts broad findings on Northern Ireland's strengths. However, it rejects or defers specific recommendations: declines to publish SMART-targeted vision with growth forecasts; commits to 'considering' Industrial Strategy Advisory Council representation rather than committing outright; defends Local Growth Fund capital-revenue split as policy-set and non-negotiable, offering alternative mitigations instead; and frames devolved policy gaps (planning, skills, infrastructure) as Executive responsibility requiring coordination rather than UK intervention. On positive commitments: funds One Stop Shop (£16.6m), supports City and Growth Deals (£617m UK investment), and establishes NIGCG coordination mechanism.
Tone
ProceduralTopics
Key actors
Northern Ireland Affairs Committee, UK Government / Northern Ireland Office (NIO), Dr Julie Harrison (NIO Permanent Secretary, NIGCG Chair), Matthew Patrick (Parliamentary Under-Secretary of State), Northern Ireland Executive, Department for Business and Trade (DBT), Ministry of Housing, Communities and Local Government (MHCLG), Intertrade UK
Notable line
“I do not share the Committee's conclusion on the effectiveness of the NIO in being the voice for Northern Ireland in Whitehall – this is at the heart of what we do.”
Key Quotes
“The NIGCG, chaired by the Northern Ireland Office's Permanent Secretary, Dr Julie Harrison, brings together a wide range of stakeholders, including the NI DfE, Invest NI, DBT, and the Ministry for Housing, Communities and Local Government (MHCLG), to ensure that both reserved and devolved levers for growth are working in collaboration.”
“The Government has noted the committee's suggestion of an economic vision with forecasts for additional growth, employment and productivity, but does not believe this is realistic, given all the different variables that impact upon such measurements.”
“Backed by the £16.6 million funding announced in Budget 2025, which became available from April 2026, work is well underway to deliver an enhanced 'One Stop Shop' (OSS) regulatory support service that goes beyond existing GOV.UK provisions.”
“I acknowledge the concerns set out in the Committee's conclusion and the challenges the funding split for the Local Growth Fund has raised for stakeholders in Northern Ireland. However, it is important to recognise that MHCLG has established a distinct, new fund focused on our priority to ensure long-term investment to support economic growth.”
“I do not share the Committee's conclusion on the effectiveness of the NIO in being the voice for Northern Ireland in Whitehall – this is at the heart of what we do.”
Source · parliament.uk record ↗