Rates Breakdown
The Councils estimated revenue expenditure (net of specific grant income and fees and charges from council services) in 2023/24 will be £74.310m.
The following chart demonstrates how this money will be spent across each of our Service Directorates:-
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Environment and Regeneration 40.37%
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Health and Communities 19.61%
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Business and Culture 11.18%
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City of Derry Airport 4.64%
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Cross Cutting Support and other costs (incl Council) 12.56%
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A further detailed breakdown of all service costs is attached.
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For the financial year 2023/24, the net expenditure will be funded from the following sources of income-
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District rates income (including de-rating grant)
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Transferring functions grant
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RATES BREAKDOWN PER HOUSEHOLD
The following table is based on the average property value and details what the average ratepayer in the Derry City and Strabane District Council will pay in 2023/43 compared to the N. Ireland Council average:
DOMESTIC RATEPAYER EXAMPLES BASED ON AVERAGE HOUSE VALUES
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Average Property Value (£)
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Average District Rate (£)-
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Average Regional Rate (£)
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Average Total Rates Bill for 2022-23 (£)
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# Figures will change when the various Council's strike their rates and Central Government agrees it’s regional rate for 2023/24.
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This year’s District rates increase of 7.97% will mean an average increase of £40.74 per annum or 783p per week and will see the average domestic District rates bill increase to £551.55.
Non-domestic rates are a rate for all business properties, such as offices, factories and shops, with bills based on the rental value of your property as at March 2023 as updated by the recent Reval 2023 exercise which saw property values in this area reduce by an average of 2.71%..
Further information and the updated Non domestic valuation list can be found online at the attached link:-
https://www.finance-ni.gov.uk/news/reval2023-will-help-rebalance-business-rates
Non domestic ratepayers will also see District rates bills increase by an average of 7.97% although individual rates bills will be subject to changes in property values following Reval 2023.
There are a range of reliefs available to business ratepayers. These include the following:-
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Charitable Exemption for rates
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Sports and Recreation Rate Relief
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Residential Homes Rate Relief
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Industrial Derating
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Non-Domestic Vacant Rating
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Hardship Rate Relief
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Rural ATMs
Of the 5,654 non domestic properties in this Council area, 15% of business ratepayers are fully exempt from rates; 65% are small businesses who can avail of small business rates relief ranging between 20% and 50% of their rates bills; and a further 7% avail of de-rating relief of between 70%-80% of their rates bills.
More details can be found at the attached link:-
The 7.97% District rates increase has resulted from the following factors and impacts:-
Given the extent of unbudgeted pressures Council is currently dealing with in the 2022/23 financial year (eg unbudgeted pay, utility costs and RSG cuts) as well as the significant uncertainties and estimates that have been applied going into 2023/24 (conclusion of pay negotiations for 2023/24, volatility of electricity, oil and gas prices, inflation levels as well as the potential for even further Central Government grant cuts to be applied to Rates Support Grant and other critical grants which Council relies on to fund services eg community services and advice funding), Council has also set aside contingency reserves to mitigate these risks..
Despite the unprecedented challenges currently facing Council, there are several positive messages from this year’s rates process. The Council area has had 741 new domestic properties developed over the past year providing an overall 1.04% benefit to this year’s rates process. Council has also invested an additional 1% into rates to address the impact of construction inflation and increased financing costs on its ambitious capital programme. As part of the rates process Council has made budgetary provision for £90m of community projects including the development of the Brandywell Sports Centre, the Daisyfield Pitches, Acorn Project and Derg Active Project in Castlederg supported by funding from UK Government Levelling Up Fund. Provision has also been made for the development of new cemetery provision for the west bank of the city, continued development of greenway provision within the city and across the Council area, a number of rural revitalisation schemes in Newtownstewart, Castlederg, Sion Mills, Claudy, Eglinton and Park and continued investment in community facilities, pitches and playparks.
In addition to this, Derry City and Strabane District Council continues to work towards the next state of Government approval for the circa £250m transformative strategic and economic projects through City Deal and Inclusive Future Fund. As part of this Council is anticipating sign-off and commencement of the DNA project by early 2024 and is progressing business case development on a range of innovation, digital and health projects, the School of Medicine at Magee, and major regeneration projects in Strabane Town Centre and along the City Riverfront and Walled City.
In conclusion, the agreed District rates increase whilst necessitating considerable efficiencies and cutbacks , will enable Council to continue to drive growth and investment across the City and Region as well as ensure the delivery of critical front-line services from street cleansing and waste, building control, planning and environmental health, grounds maintenance, parks and cemeteries, leisure, sport, health and community development and support, and vital corporate support services.
WHEN WILL I RECEIVE MY RATES BILL FOR 2023-2024?
All ratepayers will receive their 2022-2023 rates bill, which is made up of the district rate (53%) and regional rate (47%) set by central government, from Land and Property Services. The date of issue will be confirmed by Land and Property Services in due course.