Rates grant for Derry & Strabane and other less wealthy areas 'cut to shreds' warn reps

At a Governance and Strategic Planning Committee meeting on Monday, Lead Finance Officer, Alfie Dallas, said the overall RSG funding for Northern Ireland had been “very significantly reduced over the years”, dropping from £20.5 million in 2008/2009 to £4.9million in 2023/2024, and the district will also see further 36 per cent allocation reduction in 2024/2025.

“The bigger issue is that we’ve now cumulatively lost over £3 .7 million of funding,” Mr Dallas said. “Which equates to a rates impact of almost five per cent and, when inflation is applied to those figures, it’s obviously significantly higher.”

Mr Dallas said an ongoing independent review of the RSG is being carried out by Business Consultancy Services (BCS) at the behest of Minister for Communities, Gordon Lyons, and will “look to understand if the original policy intent remains relevant and if the provision of the grant meets the needs of the people in the eligible councils”.

“BCS have also advised that the amount of grant paid is beyond the scope of this review,” he added. “However they are content to collect views on this matter.

“The review schedule will be complete in October and the outcome will inform consideration by the Minister [for Communities] to enable a decision on whether the grant remains.”

Mr Dallas said he and other officers were writing a “very comprehensive and evidence-based response” to the funding decision and independent review.

The draft response detailed the principles of the Northern Ireland District rating system – and how it is impacted by wealth, deprivation and rurality – and the policy provision, i.e. the RSG, that has been in place to address these issues.

The response also details a case study within the council area.

Sinn Féin councillor Sandra Duffy said the reduction in funding was “not great news”, but the Officers’ response “comprehensively sets out the need for the grant and why it is so important”.

“We want to get off our feet and we want to be able to wash our own face in terms of moving forward, but unfortunately at this stage we need the RSG to allow people that breathing space.

“I am really concerned that the Department doesn’t really have a clear understanding of the grant, so the review needs to be evidence-based and our response very much is.

“I think that we need to be very clear around ensuring that the Minister is aware of the grant, what it does, why it’s there.

“In the past we have had meetings with Minister Lyons, so he is aware of the very particular issues around the north west.”

“I just hope that this paper is enough for him to realise the importance of the RSG for this council area.”

People Before Profit councillor Shaun Harkin said the RSG was “desperately needed” but since 2008, when the council received £4 million, funding had been continually slashed.

“If it was adjusted for inflation you could probably add a couple million more,” Councillor Harkin added. “And with the restoration of Stormont we were told there would be a prioritisation of addressing regional disparities in the north west.

“What message does this send where we have the RSG being absolutely cut to shreds, in a period where we have lobbied for it to be restored and it’s going in the opposite direction? I think that this is slap in the face to our council and our ratepayers.”

“What you’ve put together, I very much endorse it in terms of its content, and I think we have to continue a very robust challenge to what the Minister is doing.”

Andrew Balfour,

Local Democracy Reporter