Council increases Derry and Strabane rates by 5%

Rates will increase by 5% in the Derry City and Strabane District Council area next year.

The rate increase was approved by the majority of councillors at Monday afternoon’s Striking the Rate, special meeting of Derry City and Strabane District Council. 

A substantial portion of the rates collected in the Derry and Strabane area in the incoming financial year will go to City of Derry Airport (CoDA). 

In October 2024, then Minister for Infrastructure, John O’Dowd (Sinn Féin), announced £3 million funding for CoDA for the remainder of the 2023/24 financial year, with the Department for Economy assuming responsibility for its cost from the start of the incoming financial year - April 2025. 

However, on top of this Executive support, Derry City and Strabane District Council still has obligations of £1.5 million for some aspects of the running of the airport.

Significant Council monies have also been earmarked for major redevelopment projects at Templemore Sports Complex in Derry and Melvin Sports’ Complex in Strabane. 

Derry and Strabane Council  set rates increase of 4.92%

Council today agreed its budget for the incoming 2025/26 financial year

Mid Ulster District Council Strikes Rate

Mid Ulster District Council has struck its 2025-2026 rate at 5.1%

In addition, Council will continue to support a number of community welfare advice facilities, as well as planning for an anticipated pay rise of elected members. Council insurance is also covered from the rates.  

Although the final rate figure will be decided today, elected members have discussed rates at three special meetings this year, on January 6, January 20 and February 3.

Speaking to The Derry News, Cllr Shaun Harkin (People Before Profit) said there was “understandable frustration” councils across the north were “striking rates well above inflation”. 

“This is all the more so when people see Stormont MLAs preparing the ground for a 38% pay rise,” added Cllr Harkin. 

“No workers are receiving pay rises of this level, certainly not those who stood on picket lines over recent years. 

“Despite the cost of living pressures so many across the Derry City and Strabane District have faced over the last five years, rates have been hiked year on year.

“The Stormont Executive is well aware of the fact that the rates system is unfair but they do nothing about it. The wealthy don't pay their fair share. Large-scale profitable businesses avail of rates relief they don't need. 

“It's also the case that less well-off ratepayers in Derry City and Strabane District Council pay higher rates than residents in better off Council areas,” said Cllr Harkin.

Cllr Harkin also pointed out that in Derry City and Strabane District Council’s corporate policy is not to increase rates bills.

“In July 2024, Derry City and Strabane District Council responded to the Minister for Communities’ consultation on the Rates Support Grant. We collectively agreed our reply,” said Cllr Harkin. 

“It was: ‘The [rates] issue has now come to a critical point whereby Council can simply no longer afford to increase rates bills or impose service cuts on critical front line services whilst other more wealthy councils do not,’” he added.

Cllr Harkin, who criticised the Stormont Executive’s refusal to restore the value of the Rates Support Grant, said it was “refusing to commit to providing councils with funding to mitigate National Insurance hikes, even with additional money provided by Westminster for that purpose”.

He added: “The Stormont Executive is deciding rates policy and their local Council representatives vote it through. 

“Starmer's government and the Stormont Executive talk about addressing deprivation and inequality but in reality they don't challenge the logic of capitalism that oversees the transfer of more and more wealth into the bank accounts of billionaires, corporations and arms manufacturers - and away from public services.

Not only do they not challenge it, they tell us there's no alternative to it. 

The "many" are paying enough. It's time for an alternative,” said Cllr Harkin.

The Derry News also approached Sinn Féin and the SDLP for comment.