Local people will have “control of where the Whitehall cash goes” under funding plans for deprived neighbourhoods, ministers have announced as Londonderry and Coleraine are in line for a £20m windfall each.

Officials have set aside £1.5 billion to be shared around 75 areas across the UK, which can be used for projects such as youth clubs and cultural venues, as well as community services such as health and education.

The scheme follows on from the long-term plan for towns under Rishi Sunak’s government, which had similarly pledged funding for the same areas across Britain and Northern Ireland.

Londonderry and Coleraine are the areas in Northern Ireland due for the funding.

placeholder image — Coleraine is set to receive funding under Government neighbourhoods plans

Under the “plan for neighbourhoods”, the selected areas will all be handed up to £20 million each and will have a local board set up – comprised of residents, businesses and campaigners – who will get to decide how money is used, according to the Ministry of Housing, Communities and Local Government.

The boards will be presented with options of where the cash can be spent, such as repairs to pavements or neighbourhood watch schemes.

Secretary of State for Northern Ireland Hilary Benn MP said: “I am delighted that the UK Government’s Plan for Neighbourhoods will deliver £20m worth of investment each for Coleraine and Derry-Londonderry, providing a hugely welcome boost for those communities.

"This Government is committed to supporting growth and public service transformation in Northern Ireland, and through the Budget we are delivering the largest real-terms funding settlement for Northern Ireland since devolution."

Angela Rayner, Deputy Prime Minister and the secretary of state responsible for local government said: “For years, too many neighbourhoods have been starved of investment, despite their potential to thrive and grow. Communities across the UK have so much to offer – rich cultural capital, unique heritage but most of all, an understanding of their own neighbourhood.

“We will do things differently, our fully funded Plan for Neighbourhoods puts local people in the driving seat of their potential, having control of where the Whitehall cash goes – what issues they want to tackle, where they want to regenerate and what growth they want turbocharge.”

Local growth minister Alex Norris said that “when our local neighbourhoods thrive, the rest of the country thrives too. That’s why we are empowering communities to take control of their futures and create the regeneration and growth they want to see”.

Money will be made available from April 2025, with projects expected to be able to get up and running in 2026.