THE BRITISH government’s decision to withdraw £1 million funding from the International Fund for Ireland (IFI) has prompted widespread criticism from political leaders.
Established in 1986 by the British and Irish governments, the IFI was created to promote economic and social progress while fostering dialogue between unionist and nationalist communities.
Over the years, it has attracted funding from a wide range of international donors, including the United States, the European Union, Canada, Australia and New Zealand.
A spokesperson for the British government confirmed that it would not be providing the final tranche of a £4 million pledge made in 2021, citing a “very challenging fiscal position” that necessitated “difficult but necessary decisions” to stabilise public finances.
The cut comes less than six months after the Trump administration paused US foreign aid to the fund, dealing a second major blow to its operations this year.
The decision has been sharply criticised by political representatives across Northern Ireland.
Sinn Féin MP John Finucane said in a statement that the withdrawal was “extremely concerning” and warned that peace funding “must continue to be supported.”
He added that the British government should be increasing its commitment in light of the US pullback, not reducing it.
Matthew O’Toole, leader of the opposition in the Northern Ireland Assembly, accused the British government of undermining established peace-building structures in favour of politically motivated alternatives.
He highlighted the timing of a separate £1 million funding announcement for the “Connect Fund,” a scheme intended to strengthen links between Northern Ireland and Britain.
The fund was introduced following a deal between the previous government and the DUP to restore devolved government at Stormont.
O’Toole described the Connect Fund as lacking transparency and criticised it for focusing exclusively on unionist concerns while sidelining the north-south and cross-community aspects central to the IFI’s work.
He called on the British government to urgently explain its position and address growing concerns.
The government has denied any reallocation of funds, stating that the IFI and the Connect Fund are “entirely separate” initiatives.
A spokesperson reiterated that the government “remains supportive of the IFI’s aims of promoting peace and reconciliation.”
In Ireland, the Department of Foreign Affairs confirmed it had contributed €4 million to the IFI this year and expressed hope that Britain would reconsider its decision when the fund’s next four-year strategy is unveiled later this year.
A spokesperson said the department looked forward to continued collaboration with Britain on reconciliation efforts.
The IFI, now chaired by Shona McCarthy, acknowledged Britain’s past support and emphasised its commitment to working with all partners to deliver peace initiatives across Northern Ireland and the southern border counties.
The organisation was set up as an independent international body to support projects aimed at healing divisions and fostering economic stability in communities still marked by the legacy of conflict.
With the loss of funding from both Britain and the US, questions now loom over the IFI’s ability to sustain its current level of operations.