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CO3 message to MPs local growth fund plans put our most vulnerable communities at risk

CO3 message to MPs local growth fund plans put our most vulnerable communities at risk

29 January 2026

O3 (Chief Officers Third Sector) today brought the collective voice of Northern Ireland’s voluntary, community and social enterprise (VCSE) sector directly to Westminster MPs, as members of the Northern Ireland Affairs Select Committee met in Belfast to examine the impact of proposed funding changes under the new Local Growth Fund.

The meeting was facilitated by NICVA and gave sector representatives the opportunity to meet and speak directly for members of the Select Committee,

Speaking to Committee members, Valerie McConville said:

“The proposed shift from revenue to capital heavy funding is fundamentally misaligned with Northern Ireland’s needs, where progress on economic inactivity depends on trusted, person centred, community based interventions delivered by experienced VCSE organisations.”

“It is wrong to present this as simply a funding issue – it is a capacity and infrastructure crisis for the VCSE sector. Community organisations are being asked to do more, for people with increasingly complex needs, while the foundations that enable that work are being systematically eroded. The formula does not add up.”

“Once VCSE capacity is lost, it cannot simply be switched back on. We are seeing the potential hollowing out of organisations and a loss of capacity and infrastructure in the sector. When support is removed the pressure on our health , social services and justice systems increases.”

Valerie stressed that the Local Growth Fund decision impact would be felt most acutely by those already experiencing disadvantage:

“The people who will pay the highest price for these decisions are the most vulnerable in our communities – people living with long-term health conditions, mental ill health, caring responsibilities and entrenched poverty. These are not abstract numbers; these are lives, families and communities.”

The meeting took place on the same day that all parties in the Northern Ireland Executive issued a joint statement warning that the current Local Growth Fund proposals could “decimate vital services which deliver economic growth and increased productivity”.

Speaking after the meeting CO3 chief executive Valerie McConville said;

“To put in place a capital heavy funding model shows a fundamental misunderstanding of how progress on economic inactivity is achieved in Northern Ireland.

“People centred, revenue based support is not a luxury —it is essential if we are serious about getting people back into the labour market, growing the economy and delivering long term value for public money.”

“CO3 and our members stand ready to work constructively with government,” she added. “But partnership must be real. Decisions taken without understanding how services are delivered on the ground risk undermining economic participation, public health and community stability for years to come.”