People Before Profit Councillor Shaun Harkin has said that cuts by Stormont to the Rates Support Grant (RSG) was stripping millions in desperately needed funding from Derry City and Strabane District Council.
“The decision by Stormont to once again slash the Rates Support Grant is a horrendous one.
“People Before Profit fully back the robust Council challenge unanimously agreed at the Governance and Strategic Planning Committee to the Minister for Communities Independent Review of the Rates Support Grant.
“Millions in desperately needed RSG funding has been stripped away from Council by consecutive Ministers over many years.
“The total RSG budget agreed for 2024/25 is just over £3 million, down from more than £21 million in 2008/9.
“The RSG was set up to address equality of service in the less wealthy Council’s and Derry City and Strabane Council receives the biggest share of the funding, more than 20%.
If the former funding amount had been kept in place Derry City and Strabane Council would be receiving more than £4 million, instead of the squalid £666,500 that’s been agreed. It would be a lot more if funding was adjusted for inflation.
“Ratepayers in Derry City and Strabane District already pay a significantly higher percentage of their property values in rates.
“The entire rating system is unfair and needs a massive overhaul.
“The DfC Minister and his Stormont Executive colleagues who agreed to this decision are paying lip service to addressing regional disparity.
“Those of us calling for central government funding instead of burdening ratepayers with yearly hikes are completely vindicated.
“Further rate hikes and cuts are not sustainable.
“Parties in Council voting against RSG cuts need to challenge their representatives in the Executive to oppose the cuts instead of waving them through.
“There can be no honeymoon for Starmer’s government when it comes to demanding investment for Derry and the North West.”
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