Rates rise set at 3.98%

Rates rise set at 3.98%

5 February 2025

RATEPAYERS will have to fork out more money in the new financial year after local politicians agreed a near 4% rates increase on Monday night.

But the decision to hike rates to finance the local authority’s near £77m budget wasn’t unanimous.

Sinn Fein, SDLP and Ulster Unionist councillors voted through the above inflation rise, with the DUP objecting and all Alliance councillors abstaining.

It was confirmed the increase could have been significantly higher with warnings that a near double digit rise was potentially on the cards at one stage, before being pegged back after budgets across a range of departments were further trimmed.

The 3.98% increase means anyone with a property valued at £130,000 will be paying just under £25 more a year on their rates or £2.06 monthly. The non-domestic rate is to increase to 30.1884 pence.

Almost £48m of next year’s budget is being spent on wages with the Chancellor of the Exchequer’s recent decision to increase national insurance contributions resulting in an £958,000 increase for the council.

An additional £873,000 is being invested in frontline services across the planning department and Sustainability and Environment Directorate, with the local authority’s insurance bill increasing by £553,000.

Council chief executive Marie Ward said the local authority was continuing to operate in “unprecedented times” with higher interest rates and inflationary pressures which had the equivalent impact on the council as it did on ratepayers.

She said the future impact of inflation and interest rates rises on the council’s operations, rates base and finances remained uncertain, with many assumptions included in budgets for the new financial year.

Mrs Ward said staff costs were in excess of 50% of the local authority’s expenditure with the organisation likely to receive pay demands of 2.5% for the new financial year “reflecting the economic environment”.

The 3.89% rise was formally proposed by the leader of the council’s Sinn Fein members, Oonagh Hanlon.

The Downpatrick councillor said the increase was lower than the 4.5% predicted in 2023 when the council laid out its three-year rates increase projections, with the 3.89% rise equating to 47p more a week for some ratepayers.

“Sinn Fein wants to secure a stable financial budget for this district, one which will secure funding for capital projects and continue to deliver for our communities,” she said.

SDLP councillor Gareth Sharvin said that given the potential rates rise that was on the cards when the process began to set the new district rate in November, there had been a journey of working together to protect frontline services, enhance efficiency and continue to grow the council area as an attraction for investment, opportunity and becoming the number one tourism destination in the country.

“In November, we faced a potential rate of 9.18% which would have had a significant impact on local businesses and the profile of our district,” he added.

The DUP’s Glyn Hanna said his party voted against the rise because it did not believe ratepayers were getting a good deal or value for their money and were delivered “substandard services”.

He added: “There is no justification to increase rates bills on hard-pressed working families and struggling businesses.”

Alliance’s Jill Truesdale said that while her party “absolutely accepted” the democratic will of the council, it could not support any rise in the face of the ongoing unknown total expenditure of the Newry Civic Centre and the gondola project in the Mournes, “especially during a time of great economic difficulty and uncertainty”.

She said these particular large capital projects will result in additional borrowing which, in turn, will be passed on to the ratepayer.