Mayor Elisha McCallion welcomes Derry council led delegation
DERRY City and Strabane District Council led a multi-Council delegation for face-to-face talks with the DoE Minister Mark H Durkan over ongoing uncertainty of the rates support grant.
The rates support grant is a vital source of funding for Councils with proven socio-economic needs to ensure they can maintain parity of service provision with the more wealthy Councils.
The grant is now almost 25% less than that of 2009/10 figures.
These cuts have a negative impact on areas of social deprivation and create potential equality implications as they do not affect four of the eleven Councils in N. Ireland in any way.
If further cuts were to be implemented in rates support grants, Councils’ affected would be forced to significantly increase district rates, putting ratepayers at a distinct disadvantage in comparison to other more affluent areas of Northern Ireland.
Representatives from seven of the eleven Councils in North of Ireland were included in the delegation which was held in the Guildhall, Derry.
The purpose of the delegation was to highlight directly to the DOE minister the budgetary pressures some of the less wealthy Councils currently face and the potential further financial implications which could arise as a result of the rates support grant not being secured on a long term basis.
The Councils also stressed that without urgent clarity on the 2016/17 budgets it is increasingly difficult to make decisions enabling Councils to strike a rate by the 15th February deadline in a timely and informed manner.
Mayor of Derry City and Strabane District, Cllr Elisha McCallion welcomed the delegation and stressed the importance of continuous pressure being placed in relation to the rates support grant.
She said: “It is with great pleasure we welcome our fellow Councils’ to join us here in Derry for this important delegation to further highlight the precarious situation we find ourselves in with relation to rates support funding.
“It is imperative that the Rates support grant is secured to ensure our ratepayers are not adversely affected by this essential element of funding.
“It is hoped that a more long term proposal will be brought forward to the Council’s effected as soon as possible and we hope that this will be treated as a matter of urgency to allow us to strike our rates by the statutory deadline.’”
The Chief Executive of Derry City and Strabane District Council, John Kelpie added: “‘Whilst Derry City and Strabane District Council welcome the Ministers’ recent decision to reimburse £2.1m of the in-year shortfall to the rates support grant fund there is concern that this money is not ring-fenced for the long term, as such less wealthy Councils will have to factor this added pressure into the rates each year which is a further burden on our ratepayers.
“Setting rates is a challenging process following Local Government Reform given the expectations of efficiencies and the various budget cuts. In order for our Council to strike rates by the statutory deadline it is crucial that significant uncertainties are resolved as soon as possible and in a favourable manner.”
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