6.5 per cent rates increase for Derry's ratepayers

Tempers became frayed as Derry City and Strabane District councillors met to strike the rate for the 2024/25 financial year.

Council struck a district rates increase of 6.50%, which included a non-domestic rate of 37.7408 pence in the pound and a domestic rate of 0.6070 pence in the pound, at today's meeting.

The controversy arose when Mayor Patricia Logue appeared to make a jibe about SDLP leader Colum Eastwood and what she described as his mantra “he was going to stop Brexit”.

“We are still waiting on that,” said Mayor Logue, much to the anger of Cllr Brian Tierney who quickly retorted: “Excuse me Mayor, are you not supposed to be chairing this meeting as impartial and not making political points? Is that not the point of a chairperson?

“A mayor making political points like that is not appropriate in my opinion and I would like a legal opinion on that.”

Cllr Sandra Duffy then interjected and asked Cllr Tierney if he was not willing to stand over what his party leader said about stopping Boris and stopping Brexit “because that didn’t happen”.

The district rates increase of 6.50% was proposed by Cllr Christopher Jackson and seconded by Cllr Duffy. There were 18 votes in favour, 17 votes against, and five abstentions.

Opening the discussion, Cllr Jackson said: “From our perspective, the position we have arrived at now is the lowest we could possibly get, whilst avoiding job losses and avoiding cuts to services and ensuring there is a budget set aside to ensure there is a fair pay rise for Council workers.

“We as a Council will be challenging the central government cuts of 1.83% at every possible avenue and will be lobbying for additional investment into this city and district but we have to budget.

“We can’t be in a position where if a budget is agreed by an Executive and some of these cuts are not reversed, we do not want to be in a position where the ratepayers are unduly impacted. It is prudent for us to budget for the cuts that have been predicted.

“We are in a position right now where we have an opportunity to advance key projects such as Riversdale Leisure Centre and Templemore.Sports Complex.”

Opposing the rates increase, Cllr Shaun Harkin said for the past few years Council has passed on rate pressures to ratepayers  - including a last rate “hike” of 8%.

“We also put through millions of pounds of cuts to council services that were very painful,” the People Before Profit councillor said.

“Now we have ministers in place, I believe it is no longer the case central government is not able to intervene here. Not only do we have a government in place but we were told there would be £3.3 billion available to help with budgets right across the North.

“We have three things central government can intervene with, including the Rate Support Grant, which has been cut from almost £20 million to less than £5 million. If we were to receive the 21% we were supposed to receive, that would be millions of pounds we would be able to invest into the district.

“We have also called on central government to give agreement and sign-off the the City of Derry Airport Business Case, which costs Council £3.5 million per year. There have also been painful cuts to Peace Plus and a swathe of Council-funded services.”

Also opposing the rate increase, Cllr Brian Tierney said: “The reality is there is a hole in this Council’s finances.

“The SDLP understands this gap needs filled but it should not be filled by ‘placing more burden on struggling families, coping with the cost of living crisis and additional household bills’. Those are not my words but the words of First Minister Michelle O’Neill.

“Every party and independent member of this Council agree this Council’s corporate position is that Rate Support Grant should rise each year in line with inflation.

“If that was the case and the Rate Support Grant had risen since 2008, our share this year would be £6.2 million, not the £900,000 we are expecting.”

Independent councillor Paul Gallagher described reference to Riversdale Leisure Centre as “window dressing”.

Referencing the cost to Council of City of Derry Airport, Cllr Gallagher said all the ratepayers in Strabane and Derry were paying for the airport, while Causeway Coast and Glens and Donegal County Council were paying nothing.

Cllr Raymond Barr (Independent) said he would be voting against the rate increase as a “matter of principle and protest”.

“I still firmly believe that the services and facilities afforded to Strabane and the other rural areas in the Council district are disproportionate and inferior to those in the city.”

Cllr Gary Donnelly said he would not be supporting the rate rise due to “Council’s connection and squandering hundreds of thousands of pounds in a vain attempt to promote British policing”.

He also raised what he described as “bad management by this Council in one case in particular - the Ballynagard housing development in Culmore”.

Alderman Keith Kerrigan (DUP) said his party had major difficulties with the rate rise.

He added: “We are at 6.5% this year and 7.9% last year and we don’t want to put any burden onto our ratepayers but there is that difficulty that we do have to balance our books as well.”

Concluding the discussion, Alderman Derek Hussey (UUP) said: “My concern, demographically, I would imagine that one third of the Council budget should be flowing to the rural areas. It is not. What we seek is not to raise rates but we seek an equity of service provision.”