Third sector bodies in Northern Ireland have shared concerns over a reported decline in the country’s European Union (EU) replacement funding from the UK government.

Northern Ireland was allocated £104m as part of the UK Shared Prosperity Fund (UKSPF), which was set up post-Brexit “to invest in domestic priorities and target funding where it is needed most”.

The UKSPF is set to conclude in April this year and organisations such as the Northern Ireland Council for Voluntary Action (NICVA) have expressed concern over a lack of clarity about its replacement, the Local Growth Fund.

Further details were shared in December, but NICVA and charity leadership organisation CO3 described the post April funding as amounting to a 64% cut for Northern Ireland’s community sector.

NICVA said the funding would be cut from £25m to £9.2m this year.

Fierce criticism from third sector leaders

Celine McStravick, NICVA chief executive, said: “These cuts are going to decimate vital sector provision.

“We began raising concerns on the replacement fund for UKSPF over two years ago. We told everyone this was going to happen […] but no one was listening.” 

McStravick added that third sector organisations have had to plan for job losses and service closures following the government’s announcement.

“We are calling on the Northern Ireland executive to step up to the plate now […] and challenge the UK government on this shameful and misguided decision.” 

CO3 said that the reported 64% funding cut for projects tackling economic inactivity will have “serious and far-reaching implications”.

It stated: “There has been a failure to respond with an appropriate funding model that is fit for purpose here in Northern Ireland.”

UK government will invest, spokesperson says

The government said that it was investing £45.5m each year of its spending review, which is expected to last until 2028-29.

This will be spent on initiatives to address economic activity and provide local business support in Northern Ireland as part of the Local Growth Fund, it said.

A government spokesperson sought to address the fears around the funding changes.

“We know the end of UKSPF, which we announced in June will be challenging for some,” they said.

“UK government and Northern Ireland executive officials have met with Northern Ireland community and voluntary stakeholders to provide clarity on how this new fund will work.”

The spokesperson added that the Local Growth Fund will be delivered in partnership with the Northern Ireland executive, the UK government’s Northern Ireland office and the Ministry of Housing, Communities and Local Government.