Frustration as potential £6m in capital spend missed due to cuts

That’s the verdict of Derry City & Strabane District Council’s Lead Finance Officer, Alfie Dallas, who this week said reductions to the Department for Communities’ Rates Support Grant (RSG) have been extremely unhelpful.

Cuts to the fund - which provides extra finance for Councils whose needs exceed their wealth, have meant DC&SDC has not been able to leverage as much investment as it would have liked.

Speaking as DC&SDC struck the rate for 2018/19 this week Mr. Dallas said: “The most challenging and disappointing aspect of this year’s rates is the forecast Central Government grant cuts which have had a direct impact on our rates proposals of 0.26 per cent.

“These relate mainly to a further forecast 4 per cent RSG cut, a grant which is targeted towards the less wealthy Councils with the highest levels of deprivation. RSG is an investment and leverage tool, a means by which the 7 district councils with lower rates bases receive a critical investment contribution towards creating growth through enterprise and achieving greater equality of service provision and facilities.

“Cumulatively, the Council has now lost out on £421k of RSG since cuts commenced in 2016/17, income which could have delivered a further minimum £6m of capital investment or investment in other strategic priorities identified in our Strategic Inclusive Growth Plan.”

Chief Executive, John Kelpie, also pulled no punches, stating: “The further Central Government budget cuts that are anticipated by Council as part of this year’s budget process are extremely disappointing. In particular, continued anticipated cuts to the RSG have had a direct rates impact of 0.26 per cent.

“These cuts curtail the ability of those Councils with lower rate-bases and higher levels of deprivation to invest in the development of their districts, taking tens of millions of pounds of investment out of seven of NI’s 11 councils. It must be a continued priority for this Council to ensure these cuts are reversed.”

The Mayor , Councillor John Boyle, said: “It is very disappointing to note the significant pressures now placed on Councils, in particular the less wealthy and most deprived Councils, where further anticipated Central Government budget cuts to the RSG in particular have had significant impact. These cuts have had a direct District rates impact of 0.26 per cent which is very concerning and which this Council...must continue to vigorously oppose.”