ABC Council's new rates are the 'lowest possible' increase for residents and businesses

The decision was taken at a special meeting on Tuesday, February 14 where the increase was proposed by Sinn Fein group leader, Councillor Liam Mackle and seconded by UUP Alderman Kenneth Twyble.

Rates are a property tax paid by households and businesses in Northern Ireland.

For domestic premises, the value of the property as assessed by Land and Property Services is multiplied by the total of the domestic regional rate and the domestic district rate.

For non-domestic premises, the rates bill is generated by multiplying the Net Annual Value of the property by a total of the non-domestic regional rate and the non-domestic district rate.

For the 2023/24 financial year the domestic rate will be 0.4818p in the pound and the non-domestic rate will be 28.4645.

In the 2022/23 financial year the domestic rate was 0.4596 in the pound and the non-domestic rate was 26.4607.

The council says this increase would see those who pay the “average domestic rate bill” out an additional £24.48 per year while an “average sized business” will see its rates bill rise by £366 a year.

A paper presented to members before the meeting explained the council’s overall usable reserve balance was £47.9 million at the end of March 2022. With projections of a “healthy level of reserves at the year-end” it has agreed to use some of these reserves to offset some cost increases experienced this year.

Chief Executive Roger Wilson told the chamber: “there has been continual and intensive engagement” with councillors since June last year in an effort to bring this rate forward.

“A large part of this rate being struck is down to an efficiency programme, which will generate a total of £2.6 million in budget savings and cost controls to help bring the rate increase down,” he said.

“The proposal before members minimises the burden on ratepayers and continues to provide funding for front line services that are already stretched.”

Cllr Mackle thanked the finance staff for their hard work over the past number of months and praised everyone involved for getting to an “impressive figure” before proposing the recommendation to strike the rate at the figures discussed.

This was seconded by Ald Twyble before the chamber voiced its approval for the proposal.

Alderman Mark Baxter also thanked the finance team and said the council needs to run the organisation like a business and take “unpopular decisions” if required.

“It is fair to say there have been decisions taken in the past 12 months that our party did not agree with that have added to the problem we find ourselves in,” he said.

“Moving forward, this is the start of the process but certainly we simply can’t continue to put the burden on the ratepayer every time there is a crisis.

“We have to run the council like a businesses and sadly we don’t do that at present. Decisions are taken here that are maybe not financially responsible but are maybe popular. Sometimes in this organisation you have to take unpopular decisions too.”

Councillor Sam Nicholson thanked officers for their efforts and described the rates increase as “palatable”.

“The rates process can be the subject of political mischief and I thank this chamber for not allowing that to happen. What we have is palatable given the situation we find ourselves in,” he said.

“It doesn’t mean we are stripped to the bare bones, we can still support our businesses and communities and allow the borough to grow and we have not cut services.

“There is no doubt we are all on the same page about finding new ways of working but given some of the rates we have seen struck throughout Northern Ireland and the rate of inflation we, on ABC, can say we are providing best value to our ratepayers going forward.”

Alderman Stephen Moutray said the council must now move to “rationalise” its estate and find better ways of working to ensure value for the ratepayer going forward.

“To continue to salami slice budgets and use reserves is not a sustainable way to move forward,” he said.

“This council holds a significant number of properties and some have ceased to be assets and have instead become expensive liabilities.

“We must move to rationalise our estate and work to achieve the maximum amount of income by the sale of some of them. We cannot continue to run facilities and services in the way they have been done across Council.

“Continuing as we are will only ensure we fail in our duty as elected members and as a council.”

Speaking after the rate was struck, Council’s Lord Mayor, Councillor Paul Greenfield said the new rate represented the “lowest possible” increase for residents and businesses.

“Never in the history of Council have members and officers faced as sharp an increase in the cost of living,” he said.

“Council has tried to mitigate against these significant financial pressures through the introduction of transformation and efficiency processes as well as reducing budgets to ensure vital public services, the local business economy and future investment plans are protected and revitalised into the future.”