Antrim and Newtownabbey ratepayers facing sharp rise in bills

The borough council says that unless measures are put in place soon  to “mitigate the deficit situation and to make up for the potential loss in rate income in 2020/21”, it is anticipated that there will be a “substantial rate increase” next year.

Members have been told that for every £1m deficit, there would be an additional two per cent rate increase.

The estimated cash deficit for Antrim and Newtownabbey at the end of April 2020 in the region of £1.1m.

Eighty per cent of the council’s income comes from rates, earned income from facilities such as leisure centres accounts for 18 per cent and grant income is two per cent.

In addition, the council reported that it is expecting to have other “significant cash outlays” over the next six months including repayment of “rates appeals monies” to Belfast International Airport.

Prior to the coronavirus pandemic, Antrim and Newtownabbey Borough Council had estimated that it would earn £52m through rates income.

However, the local authority is anticipating a drop in business rates of 35 per cent and a loss of £0.5m in domestic rates.

Earned income is expected to reduce by £8m in this financial year while Covid-19 additional spend stands at approximately £400,000 during an eight-week period.

Earlier this month, the Department for Communities announced an additional £20.3m for local councils to assist with financial pressures as a result of Covid-19.

Communities Minister Deirdre Hargey said: “Despite the current Covid-19 pandemic, councils continue to play an essential role in delivering essential services such as waste collection and disposal, community support, and provision of registration and cemetery services.

“The restrictions that have been introduced, with the clear purpose of protecting life and ensuring our health service has not been overwhelmed, have created a severe financial challenge for our 11 councils as they have lost practically all of their self-generated income through the closure of council facilities.

“This funding will help assist councils with their cash flow and support them in the delivery of the vital services they are providing to the community at this time but will also help ensure that they are ready to play their key role in our post-pandemic recovery and limit the financial impact on ratepayers going forward.”

Finance Minister Conor Murphy said: “I’m pleased to provide councils with this funding so they can continue to provide vital services during the Covid-19 crisis.

“This support is in addition to the Executive absorbing the full cost of the business rates holiday so that it won’t impact on council’s income.”

Michelle Weir, Local Democracy Reporter.

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