Exclusive:Scotland could benefit from Stormont deal with special status for Stranraer and Cairnryan area

Ministers are looking at making the Stranraer and Cairnryan region eligible for extra funding and tax incentives

Scotland could benefit under a new deal to restore powersharing at Stormont.

The agreement between the UK Government, published on Wednesday, is expected to lead to the restoration of the devolved powersharing institutions at Stormont within days. It will also see the end of routine post-Brexit checks on goods shipped from Great Britain to final destinations in Northern Ireland.

Under the arrangement, the UK Government will commit £150 million to develop an “Enhanced Investment Zone in Northern Ireland, which will provide targeted incentives and interventions to encourage investment and boost growth”.

Powersharing in Northern Ireland is set to return in a move that could boost investment in Scotland.

In a move understood to be pushed by Scotland Secretary Alister Jack, these incentives could then be extended to the Stranraer and Cairnryan area.

Cairnryan is a village in Dumfries and Galloway, and is a short ferry ride away from Belfast. It is not yet known how many jobs could be created from the investment zone status.

The report says: “The government will support Northern Ireland to capitalise on its unique opportunities by providing £150m to develop an Enhanced Investment Zone in Northern Ireland. This new zone will ensure that Northern Ireland benefits from a policy that has been applied elsewhere in the UK, and provide targeted incentives and interventions to encourage investment and boost growth.

“As with other investment zones across the UK, this combined £150m envelope will be available to be used flexibly between tax incentives and spending on interventions.

“We will also pursue and engage through the East-West Council on the scope to extend investment zone benefits to the Stranraer/Cairnryan area in Scotland, recognising this vital Union connectivity route and boosting growth.”

Investment zones aim to boost the economy, stimulate business growth and create high-quality, well-paid jobs, and is a key part of the UK government’s “levelling up” agenda.

A UK government source said: “This will be a huge jobs and investment boost for south-west Scotland. Alister Jack has been the driver behind this exciting proposal, which will strengthen Scotland’s economic ties with Northern Ireland and benefit the whole United Kingdom.”

The joint investment zone would be in addition to the two already announced for Glasgow and North East Scotland at the start of the year, as well as two Scottish freeports in Forth and Cromarty.

A command paper titled “Safeguarding The Union” has meanwhile committed to replacing the current green lane process, which requires percentages of goods to be checked as they arrive from Great Britain, with a “UK internal market system” that will govern the movement of goods that will remain within the United Kingdom.

DUP leader Jeffrey Donaldson has hailed the move as a key concession that will effectively scrap the contentious so-called Irish Sea border for goods destined to remain within the UK.

“There should not be a border within the UK internal market – these proposals remove that border,” he said.

The measure is part of a wide-ranging deal agreed between the DUP and the Government that is set to bring about the restoration of devolved government in Northern Ireland after a two-year hiatus.

Prime Minister Rishi Sunak said restored powersharing in Northern Ireland offered the prospect of a “brighter future”.