Rates increase ‘essential to save council jobs and services’

FERMANAGH and Omagh District Council has defended the increase to local rates, describing it as ‘essential’ in protecting council services and preventing job losses.

Households face having to pay £21 per year more to the local government organisation, while business will have an increase of 7.79 per-cent on their rates bills.

It comes as many homes and businesses cope with the rising cost of food, electricity and heating.

However, the council says it’s also facing ‘unprecedented challenges’.

“Any reduction in the district rate, including a zero per-cent increase, would impact on services… grant funding which supports local community groups and businesses would be reduced and there would be job losses,” a spkesperson said.

“This year, the council is also facing unprecedented financial challenges as a result of inflation which impacts on supply costs, including energy, labour and materials.

“The council is also facing a reduction in the annual Rates Support Grant, which is provided by Central Government through the Department for Communities. The Rates Support Grant provides the council with financial assistance which helps to minimise the impact of the rates on ratepayers.

“The ongoing financial challenges and cost increases which the council is required to meet contributed to an increase in the rates to enable the council to continue to deliver services for residents and businesses.”

Over the next five years, the council said it will be spending in the region of £145 million on capital projects.

This is being spilt up within each 12 month period, with an estimated £37.1 million in 2024/2025, £51 million in 2025/26 and £36.5 million in 2026/27.

The estimated capital plan programme has prioritised projects which have received external funding.

However, most of the funding is expected to come from external sources, with the largest amount (£17.9 million) to be financed by the council itself in 2024/25.

“The capital (expenditure) includes some significant projects that are currently at the stage of business case development, the outcome of which will be determined by future council decisions,” the council said, in its detailed analysis of spending priorities contained within documents explaining this year’s rates increases.