Frustration for Invest NI as it deals with budget uncertainty

Margaret Canning

Paul Givan. Credit: Liam McBurney

February 18 2022 06:27 AM

Invest NI, which supports economic development here through grants to companies, is in a frustrating predicament where it is unable to function as normal due to a lack of certainty over its budget for 2022-23.

That is compounding an already precarious position caused by the post-Brexit loss of support from the EU, which bolstered what once was Invest NI’s own financial clout.

Invest NI is also facing an external review into what it does, which could mean a big change in direction in future.

Its parent Department for the Economy had warned that hundreds of millions of pounds of investment will be lost and thousands of potential jobs not created because of budget cuts and the loss of £100m in European funds over three years.

That was the troubling verdict of finance director Sharon Hetherington at a hearing of the Assembly economy committee last month. Dire as her warning was, it seemed abstract until now. Yet now things are a lot worse since the DUP withdrew Paul Givan as First Minister, leading to the collapse of the Executive, as the draft budget cannot now be approved.

The real world consequences of Invest NI’s financial paralysis are now apparent. Two sources have told us that US firms have opted to set up in other territories after Invest NI couldn’t commit the money they’d promised to help them set up here.

That has created frustration for hard-working Invest NI staff, many of whom will have worked for a couple of years to woo firms to set up here. Now they can’t get the nod to send out the letter of offer confirming the financial support they can give.

It is yet more evidence of the painful consequences of yet more political chaos here.

Frustration for Invest NI as it deals with budget uncertainty

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