Derry/Strabane facing ‘one of most difficult periods for local government in decades’

Alison Allen acknowledged the challenging financial circumstances being faced by local authorities during a briefing of the Derry City and Strabane District Council Governance and Strategic Planning Committee.

Several councillors raised the precarious state of the local government finances and a swingeing 45 per cent cut to the Rates Support Grant, which is supposed to provide support to less affluent council areas like DC&SDC.

RSG support has decreased from £8,924,000 in 2022/23 to £4,900,000 in 2023/24. This total sum will be shared among seven councils and Derry and Strabane will receive just £982,450.

For comparison, the level of RSG support regionally in 2007/8 was £20,497,000.

Ms. Allen said: “I have to say that whilst we will lobby very, very hard on these things I don't feel that we are in for an easy ride. Maybe I'm underestimating that...I think this is possibly going to be one of the most difficult periods in local government in recent decades.”

The NILGA Chief Executive also acknowledged the particular social and economic circumstances that prevail in Derry and Strabane.

“I think we are acutely aware of regional disparities in NIGLA. That is very important as an organisation and I think the representation regionally in the last mandate was extremely strong on those matters so it is not a Belfast-centric or Belfast-metropolitan area narrative. It is very much focused on those regional needs,” she said.

During the meeting Sinn Féin Councillor Christopher Jackson said NILGA’s support would be vital given the state of the public finances.

“We want to deliver first class council services right across our district but we are doing that during a period of political instability, when there are serious questions about the sustainability of council finances and on the back of budget cuts.

“You referred to the RSG. There are so many challenges facing council and it is all happening in a climate of political instability so local councils are the only show in town at this minute in time and it is important that we all work together so that connective and collaborative approach is essential and is is more essential now than it has ever been so the role of NILGA is key to that.”

People Before Profit Councillor Shaun Harkin suggested regional and central government should provide more funding for local government in the North.

“Councils are in serious trouble. We had a very difficult year last year where this council raised rates by eight per cent, cut services by £3.5m, and raised prices for basic things like swimming and I think that is something that is unacceptable in a cost of living crisis.

“This has been the same in many other councils across the North and we have to combine our efforts as councils to put pressure on decision-makers who actually hold the purse strings, be they in Stormont, or more importantly in Westminster, where they could easily increase funding to local councils to assist us as they did during the pandemic and so that residents in Derry and Strabane don't suffer and get thrown into deeper hardship and so that councils like ours are not forced to make decisions that they really shouldn't be taking.”

SDLP Councillor Brian Tierney said NILGA can play a convening role for local councils as they attempt to lobby Stormont and London for support.

“We are heading into a difficult period for local government. I think everybody has expressed why and how we are going to be heading into this difficult period but I think at the far end of it there are a number of opportunities as well which hopefully will come before the end of this mandate, all of which, in terms of the difficulties and opportunities, we need to be prepared for and ready for.

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"We need to have that direct link-up with central government and having NILGA there to hopefully open doors and get us in and making sure that those that are making these tough decisions understand that from a local government perspective the impact that has but from this council's perspective as well the impact that will have.”

Ms. Allen said the situation regarding cuts to the RSG was ‘very, very concerning’.

But she said she feared that if the British Government does announce a funding package for the North or if it announces increased funding for local councils in England and Wales that leads to increased allocations here under the Barnett formula that local government will not see it.

“The bigger concern I have, and I'll be honest with you, is that any additional finance that comes into this region from the UK Government, as is possibly being discussed in the media, is still subject to Barnett requirements.

"In the past, John [Kelpie, DC&SDC Chief Executive) will know this, additional money has come in that was destined for local government in England and Wales but local government never got that money because it was used regionally to deal with other public service pressures.

"So already you are not getting the benefit of that direct relationship when awards are being made by the UK Government and that is the concern that I have again that if there is a cash injection, given the levels of concern about our public services at a regional level, that we may find ourselves in that position again.”

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