£8m aid to curb rates hike fears

Finance Minister Nigel Dodds said the aid package is necessary

A support package of up to £8m will be available to councils struggling to keep rates down, the Finance Minister Nigel Dodds has announced.

It follows concerns that some councils were preparing to raise their rates by as much as 10%.

More than £4m will be available for councils to divide following a change in the way their income is calculated.

Mr Dodds said he was responding to concerns raised by the local government association.

The package will also assist all 26 councils hit by the sharp rise in the cost of collecting rates by Land and Property Services.

The minister has ensured that extra costs, totalling £600,000, are not passed onto councils.

There is also help for those hit by rates rebates which have been granted to the Ministry of Defence and British Telecom.

The rebates date back five years and total about £3m. Councils will have five years instead of one year to repay the funds to central government.

Mr Dodds said the package was "a proportionate, necessary and affordable response" to councils' difficulties.

Councils across Northern Ireland have until 14 February to strike the new district rate in preparation for April bills.

The Northern Ireland Local Government Association (NILGA) welcomed Mr Dodds' announcement on the support package.

Councillor Helen Quigley, President of NILGA, said it "would be of great help to councils".

"I am pleased that the minister has genuinely listened to councils' concerns and developed a range of actions in response to NILGA's requests," she said.

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