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Derry and Strabane council approves 4.48 per-cent rates increase

DERRY City and Strabane District Council has approved a 4.48 per-cent increase in the District Rate for the 2026/27 financial year, raising the average domestic rates bill by £27.79 annually.

For the average household, the increase equates to around 53p per week.

Following the decision, which was taken at a special council meeting today, Sinn Féin said the rate increase represented the lowest possible rise to protect essential services while enabling unprecedented investment plans.

In a statement, Strabane-based Sinn Féin councillors said, “While we are always conscious of the need to keep costs as low as possible for households, the 4.48 per-cent rise is the lowest rate possible while meeting agreed responsibilities, including staff pay awards and our ambition to deliver first-class services and facilities.

“The council is currently advancing the most ambitious public investment programme the area has ever seen, with more than half-a-billion pounds in fully-funded projects.”

They highlighted that the investment includes £115m for Strabane town centre regeneration through the City Deal, encompassing a new state-of-the-art leisure centre, a health hub, a new further and higher education campus, and a new cycle and pedestrian bridge linking the town centre with the Bradley Way bus depot.

The councillors added, “The rates process protects funding for major capital projects while also ensuring continued investment in community centres, urban and rural play parks, greenways, the Melvin Sports Complex floodlighting project and environmental initiatives across the district.”

But independent Strabane councillor Jason Barr was among a number of representatives who voted against the rates increase, stating that he believed it would place an ‘excessive burden’ on families and business owners.

In a statement, Cllr Barr said, “Unfortunately, rates have once again been increased by 4.48 per-cent, creating an additional burden that families and local businesses do not need.

“We have already seen many shops close due to repeated rates hikes, while government has failed to step in to support our council area. More than £3m in rates support grants has been cut in recent years, and for these reasons I voted against the increase.”

Presenting the budget today, Lead Finance Officer Alfie Dallas said the overall increase comprises a 2.68 per-cent baseline rise to meet inflation and statutory cost pressures, alongside a further 1.8 per-cent investment to support growth and new service development.

He explained that the baseline element reflects rising costs including utilities, waste contracts, maintenance, materials and employee pay, as well as the need to offset reductions in government grant funding.

Additional investment is also required to meet growing demand across key frontline services such as licensing, planning, building control, animal welfare and waste collection, particularly in areas experiencing new housing development.

Mr Dallas noted that the council area continues to have the lowest average property values in Northern Ireland, meaning a higher rate poundage is required to generate comparable income.

However, he said average rates bills would remain lower than in most other council areas and reiterated calls for the reinstatement of the Rates Support Grant to help protect ratepayers in less wealthy districts.

Despite the increase, members were told the budget reaffirmed the council’s commitment to long-term investment, with continued progress on its £711m capital programme.

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