Causeway Coast and Glens ratepayers face 7.65% rates hike for coming year

The decision was taken by a majority of Council’s members last night, and are the highest in the north, as the Council faces a funding deficit of over £7m.

A total of 20 Councillors voted in favour, while 16 voted against the rates increase.

It comes after the Council this week endeavoured to make cuts of over £2m, which included scrapping the Portrush Air Show this year.

The council raised rates by 1.5% last year, which was the first increase in four years.

In a statement the Council said that the decision was taken in “line with an efficiency programme which will deliver savings of £2.5m and supported by an independent review of Council finances”.

For a rate payer in a domestic property with a capital value of £200,000, the increase equates to £1.07 per week.

The Council said it remains “committed to providing a quality service to its ratepayers despite growing budgetary pressures”.

It also said that over the last four years, it has applied “minimal rates rises which have been the lowest across Northern Ireland”.

Explaining the circumstances in which the rates hike was agreed, a Council spokesperson said: “When Council formed in 2015, it inherited long term borrowing of £72.8m from its four legacy Councils.

“This type of borrowing is used to fund all capital projects carried out by Councils. Capital projects carried out by Causeway Coast and Glens Borough Council since 2015 include public realm schemes, extended brown bin collections, match funding for projects, tourism initiatives, caravan park improvements, sports facilities, car park upgrades and building maintenance, which have been completed to ensure that the Borough continues to be a great place to live, work and visit.

“Council’s most recent audited accounts, as at March 31, 2019, confirm that Council’s total borrowing is £71.1m. Council is required to have arrangements in place which ensure that its spend on capital projects is affordable and sustainable.

“The audited accounts show that Council has complied with these requirements and Council will continue to monitor its level of borrowing to keep within the required level as set out in Local Government Finance Act (NI) 2011.”

Ulster Unionist Deputy Group Leader Richard Holmes said that this “has been one of the most difficult rates setting processes we have been through”.

“Much work has been concluded across a range of Parties which has delivered a rates freeze for businesses and a 7.65% rise on the domestic rate.

“Tough decisions have had to be taken to reduce costs and raise additional income which we know will not be popular. But we must ensure council services continue to be delivered.

“Causeway Coast and Glens has significant debt of £69m but is by no means the most indebted council in Northern Ireland. Reserves are within guidelines and even after this significant rates increase we still have one of the lowest rates increases since the 2015 council amalgamation across Northern Ireland.”

He added: “The Ulster Unionist Party firmly believe that more work could and should have been done to reduce the operating costs of council but there has been an unwillingness to look at reducing these costs.

“Given these circumstances, this is the best result that could be achieved. The rates freeze for businesses will ensure our high streets and businesses are not hurt further, with many suffering the effects of revaluation.

“It is now for councillors to ensure the promised efficiencies are delivered and that costs are brought under further control in the year ahead.”

Sinn Fein Councillor Cara McShane claimed that ratepayers were now having to “pay the brunt of poor governance” and said that the rates hike had been imposed after being backed by the DUP and UUP.

“Incremental increases in line with inflation as proposed by SF since CCG was formed would have helped ensure we did not have to burden people with a cliff edge financial crisis like we are experiencing now,” she said.

The rate factors which will be applied from April 1, 2020 are:

Domestic 0.3900

Non-Domestic 24.8603

This takes no account of any regional rate increase which has yet to be announced.