RATES… Tom Elliott, UUP
WHEN Fermanagh and Omagh District Council’s merge in just under a year’s time one of the burning issues concerning the people of both areas will be rates.
This year Fermanagh was found to have one of the lowest domestic rates in Northern Ireland and also this year Omagh reduced their rates for the first time in its history.
However, when the two councils merge next May ratepayers here could be facing an increase in their rates bill.
In a bid to alleviate any financial hardship a £30 million subsidy scheme for ratepayers under the new 11 council model has just gone out to public consultation.
The executive has set aside up to £30 million to develop a transitional rate relief scheme to mitigate the impact of rates convergence on rate payers who would otherwise face excessive rate bills under merging councils.
Minister Simon Hamilton explained that decreasing the number of councils from 26 to 11 will present immediate challenges including the ‘major issue of the convergence of district rates.
“If rates bills are simply worked out using the new district rate, ratepayers in some areas would face significant and sudden increases. The Executive has set aside up to £30 million for a transitional relief scheme to protect those affected ratepayers.”
The scheme being developed will allow councils to strike a new district rate in the normal way, with land and property services applying an automatic subsidy directly to rate bills for the next few years.
Tom Elliott has been working hard over the past few years for such a scheme to be implemented.
“I welcome proposals for £30m rate relief for those ratepayers in areas who are likely to face a significant rates increase due to the merging of two or more councils where there is a differential between the merging councils rate base.
“This is a development that I have been calling for from Ministers for some years and I am pleased that at last a scheme has been developed.
“The proposal of a phased increase for those ratepayers is some comfort, however those who live in the current area where there is a low rate base will feel somewhat short changed at being efficient for years will be subject to a phased increase for possibly three years until it reaches the level of the higher council’s rates level.
“Obviously the outworkings of the scheme will be vital to demonstrate its benefits or otherwise.
The public are encouraged to inform themselves about this consultation and respond so that an effective scheme can be put in place before next year’s rates bills go out.
Also welcoming the scheme was DUP councillor Paul Robinson.
“I think this will be a good thing to cushion the blow for the people of Fermanagh.
Councillor Robinson said the first meeting of the shadow Fermanagh and Omagh council takes place today at the Grange in Omagh (current headquarters of Omagh District Council) and he said he expects to hear more about this scheme at that meeting.
“Rates is a big issue for everyone – probably more so domestic rates in county Fermanagh.
“Something like this (scheme) is needed.”
Party colleague David Mahon said this relief scheme will ‘ease the burden’ that will be placed on domestic ratepayers.
“As I understand it Fermanagh people are going to be affected more by the rates than Omagh people – and some of them quite heavily,” said the newly elected DUP councillor.
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