Dodds Unveils New Rates Package

In announcing the move, the Minister, who has responsibility for rating matters, highlighted that he had listened to the views of many stakeholders before making his decision: "I listened carefully to the concerns put forward by councils, the Northern Ireland Local Government Association and MLAs over recent weeks and I believe that my decisions will deliver real and immediate help to councils."

The Minister highlighted that he had taken his decisions against the backdrop of a difficult economic situation that was affecting many organisations. He pointed out that the fall in income to district councils, and impact of adjustments made following appeals by BT and MOD, would have a similar impact on the Executive's regional rates revenue.

The Minister continued: "I want to be able to provide assistance to councils quickly. For this reason I have worked within the constraints of the current rating system and its legislation to ensure that I can deliver assistance immediately." Moving on to explain the detail of the package, the Minister said: "In order to provide meaningful help to councils, I intend to move in three ways. I have decided that:

• Additional help will also be provided to councils by changing the way their net revenues are calculated, providing additional benefits to councils worth £4million next year; and
• I will also ensure that some of the additional costs associated with the development of new IT systems are not passed on to councils, providing a one off benefit to councils of £0.6million."

In conclusion the Minister said: "This package is a proportionate, necessary and affordable response to the difficulties faced by councils next year. It is not a bail out but is a response to the fact that councils faced a number of exceptional one off items next year that would have hit them just at the same time as they seek to manage the wider impacts of the economic downturn. I anticipate that my package of measures will provide additional support worth up to £8million to councils next year.

"It provides assistance for all councils, at what is a difficult time for local and regional government and the wider business community in Northern Ireland."