A new regional cancer centre in Northern Ireland has been given the green light as part of a �270m spending package by the Stormont Executive.

The money comes from a funding initiative unveiled by ministers earlier this year.

Hospitals and schools across will also benefit from spending announced in the Northern Ireland Assembly.

Plans for a new specialist cancer centre at the City Hospital in Belfast have been considered for several years.

However, a lack of money has delayed the project.

The centre is expected to cost in the region of �57m.

It will establish itself as a world leader in patient care, research and teaching

Bairbre de Brun Health minister

The investment is the first tangible result of an initiative announced two months ago designed to improve public services.

Health Minister Bairbre de Brun "it was a great day for cancer services" in Northern Ireland.

"What we will build on this site is a state-of-the-art facility that will serve patients well into this century," she said.

"It will be able to take advantage of the major advances in the treatment and care of cancer patients. It will establish itself as a world leader in patient care, research and teaching.

"This will be a centre of excellence to rival the best in Europe."

Research funding

Under the first phase of the agreement, �270m is to be spent, with health and education the two top priorities.

In total �110m will be spent on health - while more than �60m will be spent on school and college buildings.

The money for education falls into three main categories: new school and college build, planning and refurbishment, and university research.

While the amount announced on Tuesday is �65.5m, the total cost of the projects this will kickstart is a �150m.

Mark Durkan: Announced funding initiative

Queen's University, Belfast, and the University of Ulster will again compete for research funding over the next five years.

Among the schools to share �22m are Thornhill College in Londonderry and St Patrick's Academy in Dungannon, County Tyrone.

Another �15m will be devoted to cutting the number of mobile classrooms.

The Department of Regional Development is to get �67m to improve roads, watermains and the sewerage system.

Programme for Government

First Minister David Trimble said: "Just two months after the initial launch of our programme to tackle our infrastructure deficit, the executive has decided on what should be achieved over the next two years."

He said the new money was "an unprecedented package" which would create a significant acceleration of major investment in our infrastructure.

Deputy First Minister Mark Durkan said: "From our work as an Executive over the last year, we have agreed that there are a number of areas where there are major infrastructure problems.

"We have concluded that what is now needed is a major set of investments focused primarily at these programme areas. This approach fits into the priorities we have identified in the Programme for Government and Budget and which we want to refine in the coming year."

This money is a mixture of borrowing and reallocation - but in reality is only a first gesture to tackling a funding backlog that runs into billions of pounds.

A proportion of the money is to be borrowed from the Treasury with the rest being raised from the executive's budget and savings.

Underspending

The second phase of the initiative would see much more Treasury borrowing - but that means financing the repayments.

In turn, this has prompted a wider review of spending, local government and crucially, the rating system.

In May, the government said an extra �2.7bn would be made available for the health service in Northern Ireland over the next five years.