Rise in bills predicted as Antrim and Newtownabbey Council meets to strike rate

Draft rates estimates in December predicted an increase in residents’ rates bills of 2.99 per cent while businesses in the borough could be facing a higher rate of 24.7613 pence in the pound, in a rise from 24.0426 pence in the pound.

The authority needs to raise almost £54m to provide all services compared to £51.8m required this financial year and £51.45m during 2020/21.

The Northern Ireland Audit Office has warned of “long-term challenges” for local government finances.

Local Government Auditor Colette Kane has said that while the short-term financial impact of the Covid-19 pandemic on local councils has been “offset by additional central government funding, there will be long-term challenges for council services and finances”.

Antrim and Newtownabbey council is bracing itself to be hit by higher staffing costs including salary inflation, increase in employers’ National Insurance contributions, inflation costs and energy prices.

Funding has already been set aside for high profile events this year including Her Majesty’s Platinum Jubilee celebrations and a Women’s Euro football finals event.

Last year, the council had feared a drop in business rates income of 35 per cent and a loss of £0.5m in domestic rates as a result of the Covid pandemic.

In June, an update presented to councillors showed that the borough council had lost almost 100 jobs as a result of cost-cutting measures . The report stated that the “staffing head count” had reduced by 96 overall through a  cost-cutting” staff reduction exercise”.

Of these, 36 were achieved by “not filling non-essential posts”and four through resignations and retirements.

It was estimated that the job losses will result in a saving to the local authority of £2.5m annually at an initial cost of £1.6m.

The authority has asked the Department for Communities to “capitalise” this cost meaning it can be “written off” during the next four years.

At an audit meeting the same month, Glengormley Sinn Fein Councillor Michael Goodman said that the local authority was “not in as dire a financial position as we thought we would be”.

“Given that we cut back on community planning and economic development, would it not be more sensible to put some money siphoned off into reserves into reinvigorating services we would make funding from.”

He pointed out that the council has “a significant amount of money in reserves” and questioned where that money has come from.

Sandra Cole, the council’s interim deputy chief executive of Finance and Governance, reported an increase in the authority’s reserves general fund from £5.9m to £6m through access to the furlough scheme and  funding from Government as well as “significant savings” made within council services during the Covid pandemic.

Last year, the local authority had a nett worth of £92.6m.

Michelle Weir, Local Democracy Reporter