Finance Minister John O’Dowd has allocated £27.4 million in capital funding from the Local Growth Fund for projects intended to stimulate regional economic development, support businesses, and revitalise communities across Northern Ireland.

The investment is designed to help entrepreneurs, start-ups, and social enterprises expand, while regeneration funding will transform vacant and underused assets, improve access to employment and skills, and strengthen the social economy.

A portion of the money will go towards agricultural innovation to increase productivity in the rural sector. Transport and connectivity improvements are also planned to make it easier for people and businesses to access economic opportunities.

The Executive agreed the capital allocations for the 2026-27 financial year after the British Government maintained a capital-heavy funding profile despite appeals for changes.

A co-design process involving the community and voluntary sector and other stakeholders has been launched to shape delivery of the Fund in the two following years.

Minister O’Dowd said the handling of the Fund had been far from ideal and that funding priorities should be set by locally elected ministers rather than Westminster. He also argued that the overall funding package falls short of previous EU funding, breaching commitments that Northern Ireland would not be left financially worse off after Brexit.

The capital allocation is additional to £11.8 million of resource funding being delivered by the Ministry of Housing, Communities and Local Government in 2026-27. Capital and resource funding for 2027-28 and 2028-29 will be delivered through an Investment Plan led by the Northern Ireland Office.