Two city and growth deals in Northern Ireland have been left in “limbo-land” amid funding uncertainty.

The UK Government announced earlier this month that funding for the four city and growth deals in the region would be paused.

It later emerged that the Belfast and the Londonderry and Strabane deals would not be affected because those deals were at a later stage.

The Stormont Finance Committee hears evidence on city and growth deals on Wednesday (NI Assembly/PA)

However two other deals, which cover Causeway Coast and Glens and the Mid South West region, are awaiting the conclusion of the spending review to hear whether the funding pause will be lifted.

A deal for Argyll and Bute in Scotland is in a similar situation.

Jillian Gilmore, director of city and growth deals in the Department of Finance, said some of those involved in the deals where funding remains paused feel like it is a city versus rural issue.

She briefed MLAs in the Stormont Finance Committee on the matter on Wednesday.

“The Treasury are saying it’s got more to do with the stage that they’re at in the process, the two growth deals aren’t impressed with that narrative because it was the UK Government who announced the funding for these deals, so it was really down to when they announced it,” she told MLAs.

“They’re not far behind, it’s just a different time frame. So much work has gone on with those two growth deals, they have had strategic outline cases approved for all of their projects. Causeway Coast and Glens have signed its heads of terms in April and Mid South West was actually due to sign, an event was planned, a venue was booked for mid-October.”

Ms Gilmore recalled receiving an email around the pausing of funding at “10.45am on Wednesday” (September 11) after she had chased Treasury officials around funding for the deals.

She said the Treasury has told them that they “need the evidence to say why this is value for money and should go ahead”, adding they are working with the deals and the Northern Ireland Office to supply that evidence.

Stormont Finance Committee chairman Matthew O’Toole at a meeting of the committee on Wednesday (NI Assembly/PA)

However Ms Gilmore said they do not expect to hear an outcome until the spending review is completed at the end of next month.

Committee chairman Matthew O’Toole said it was “quite a large cock-up” by the UK Government, contending it had “handled it appallingly”.

He questioned Ms Gilmore on what the pause means for the affected deals, to which she replied: “It’s limbo-land … when everything had just transpired, that first weekend, the four deals were having special meetings, there was a real confusion, ‘What do we do, does this mean we tell our consultants to put pens down and not to develop anything else’, there was worry about work being lost.

“Some of the partners were talking about the experience through Covid when there was a bit of stop-start, and trying to get consultants to come back again.

“There were very valid questions, the Finance Minister (Caoimhe Archibald) put that to the Chief Secretary to the Treasury, but we don’t really have much more clarity.”