Ratepayers in Derry and Strabane are to be hit with an inflation busting increase of nearly 5%. That will work out to an extra £28.96 on the average rates bill in the council area, or 56 pence per week, with the regional rate still to be determined at the end of March.
The largest party on the council, Sinn Fein, said a 4.92% increase agreed during a special council meeting on Monday afternoon is the smallest increase possible for the council to press ahead with plans to upgrade leisure centres, prevent job losses and maintain services.
Derry City and Strabane District Council agreed its budget for the incoming 2025/26 financial year and set a District Rates increase for ratepayers of 4.92%.
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A council spokesperson said: "The increase comprised a 3.42% baseline increase to cover the significant statutory financial challenges and service demands facing Council along with a 1.50% rates investment towards the financing of Council’s hugely ambitious and exciting capital strategy.
"In terms of the baseline increase, Members were advised of the range of statutory pressures and new service demands facing Council services including pay pressures, Employer’s national insurance costs and cost inflation which have been partially offset by some rate-base growth, additional waste income and continued efficiencies across Council services.
"It was outlined to Members at the meeting that pay pressures continue to be a significant issue for Council, particularly in the current year whereby the Employer’s national insurance increases imposed by the recent UK budget have added circa £1.1m to Council’s pay bill and have had a direct 1.21% impact on rates bills. Unfortunately, despite ongoing lobbying by Councils, no funding has been confirmed from Treasury to offset this additional cost for public sector employers in Northern Ireland."
The council spokesperson continued: "Facilitated by new waste income, the baseline rates position also includes investment of £1.266m (1.64%) towards the reinstatement of previously implemented service cuts as well as new service pressures and demands.
"These include costs associated with assuming the responsible reservoir manager role at Creggan Reservoir; addressing budgetary and resourcing pressures within our key core front line services e.g. grounds maintenance, refuse collection, street cleansing and cemeteries; additional investment into grant aid programmes within sports development, community centre venues, consensual local growth partnerships, advice and cultural organisations; additional resources within community services to address emerging and immediate priorities e.g. Whole Systems approach to Obesity and Ending Violence against Women and Girls strategy; as well as additional tourism resource focused on screen and food tourism.
"This year’s budget will therefore allow Council to continue to provide critical frontline services to ratepayers with a clear focus and commitment to protecting jobs as well as the continued provision of funding to organisations who rely on Council support to deliver community services and projects.
"Central to this year’s rates process is the substantial positive progress made to Council’s capital funding strategy and our ambitious capital development plans. To date over £200m of capital projects have been completed or are progressing with full funding in place. These include Acorn Farm, Derg Active, Daisyfield Sports Hub, new Northwest cemetery provision at Mullenan Road, the DNA Museum and coronavirus recovery small settlements investment across the District, as well as the recently approved Riverine and Strabane Public Realm projects."
Sinn Fein councillor Christopher Jackson said: "We recognise that many households across Derry and Strabane are continuing to bear the brunt of rising costs so our focus has been to keep the rate as low as possible. Obviously that has been a huge challenge given the impact of sustained British Government cuts on public services, including local government.
"However, we have been aided by the Stormont Executive with significant support for the airport from the departments for infrastructure and economy, the prioritisation of the North West in promoting regional balance, as well as progress on the City Deal projects and the ongoing expansion of Magee.
"As a council, we want to invest in growth, we want to invest in the future. We want to secure jobs and services and finally deliver a funding strategy that will see state of the art leisure centres constructed at both Templemore in Derry and in Strabane. That has been our stated priority for a number of years and we now have the funding in place to deliver it as well as the other council commitments including community centres, playparks, greenways and environmental projects across the city and district."
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