£647m Plan for Change: Reeves pledges major economic boost for Northern Ireland

Chancellor of the United Kingdom, Rachel Reeves

Northern Ireland is set for a major economic boost as Chancellor Rachel Reeves confirmed more than £647 million in new funding and investment during a visit to Belfast today.

The package, part of the UK Government’s Plan for Change, is aimed at “fixing the foundations” for long-term prosperity by targeting high-growth sectors including creative industries, defence, and safer communities.

Headline measures announced include:

• £310 million 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.

• £137 million in new funding to tackle paramilitarism and organised crime, aimed at removing barriers to investment and growth.

• £100 million private sector investment from defence firm Thales, supporting expansion and up to 200 new jobs.

• The largest real-terms settlement for the Northern Ireland Executive since the Belfast Agreement, averaging £19.3 billion per year until 2029.

During her visit to Studio Ulster, the Chancellor praised Northern Ireland’s creative industries, which have attracted global productions including Game of Thrones and Line of Duty.

The studio is benefiting from £25.2 million of UK Government funding through the Belfast City Region Deal, supporting “high-value, high-skill jobs” in film, TV, and digital innovation.

Chancellor Rachel Reeves said:

“Northern Ireland is brimming with talent and ambition, from cutting-edge film studios to world-class defence manufacturing. Today’s investments are about fixing the foundations for future prosperity – backing the sectors that will create good jobs, drive economic growth, and allow communities to thrive.

“This is a turning point. Every pound we invest here supports good jobs, strengthens our economy, and boosts the United Kingdom’s standing on the world stage, with Northern Ireland at its heart.”

Later today, Reeves will visit Thales’ Castlereagh site, where the £100 million expansion will add a third facility and create up to 200 skilled jobs, adding to the 900 already supported by UK defence spending in Northern Ireland.

The Government’s commitment to raise defence spending to 2.6% of GDP will further secure the region’s industrial future.

Secretary of State for Northern Ireland, Hilary Benn, said:

“With world-class strengths including in advanced manufacturing, cyber, defence and the creative industries, and access to the EU market, Northern Ireland is perfectly placed to seize the opportunities ahead.

“That is why we are committed to supporting Northern Ireland to fulfil its potential through the City and Growth Deals, our Industrial Strategy, local growth funding and the record settlement for the Executive of £19.3 billion per year, which is the largest in the history of devolution.”

Additional measures include:

• £185 million for public service transformation.

• £2 million for integrated education.

• At least £30 million for Belfast and Derry-Londonderry from the new Local Innovation Partnerships Fund.

Professor Declan Keeney, Chief Executive of Studio Ulster, said the investment recognised “the critical role this facility plays in boosting local skills, attracting international investment, and expanding economic opportunity for communities across Northern Ireland.”

Nigel MacVean, Managing Director of Integrated Air-space Protection Systems at Thales in the UK, welcomed the increase in defence spending, saying it would help “accelerate innovation, expand our reach, and deliver even greater value” to customers and partners in the UK and internationally.

The announcement cements Northern Ireland’s position as a key hub for high-tech industry, defence manufacturing, and creative excellence, with ministers promising the funding will “turn ambition into lasting prosperity.”