Rates Questions and Answers
1. How much will my rates increase by for 2023-2024?
Not accounting for any adjustment on the Regional Rate which remains unknown, the District Rate Poundage on the rates bill will be 0.4033p (increase 5.59% on previous year) for Domestic rates and 24.418p (increase 7.45% on previous year) for Non-Domestic rates. Department of Finance have not yet released their rate poundage for their element of the bill (Regional rate).
2. How much more per year will I have to pay as a result of the increase?
Excluding the Regional Rate which remains unknown, the increase in rates bills as a result of the District Rate for 2023/24 will be £21 per annum for a domestic property with a capital value in the district of £100,000, and an additional £169 per annum for a non-domestic property with a NAV of £10,000. This represents almost half of a rates bill.
3. Why are the rates increasing from 01 April 2023, particularly as we are in a cost of living crisis?
Like residents and businesses, the Council is also experiencing the same ongoing significant inflationary and external cost pressures to deliver services and continue to invest in the District. Councillors and Council Officers have considered all relevant factors including service efficiencies and the use of available reserves to minimise the impact on ratepayers.
The increase in the rates will enable the Council to deliver core / statutory services and to continue to deliver services to support communities and businesses and to enhance the local economy and the wider District. It will also enable investment in our communities through the delivery of a Capital Programme and Capital Grants.
The current UK rate of inflation is 10.5%, therefore, the rates increase for 2023-2024 is well below the rate of inflation.
4. The Council recently received £20 million in Levelling Up Funding, could this not be used to reduce the impact on ratepayers?
The Levelling Up Funding is to be used specifically for the capital redevelopment of Fermanagh Lakeland Forum and the surrounding Broadmeadow area. This funding has no impact on the revenue funds required for the delivery of Council services or the rates setting process.
5. Some community events were cancelled in 2022, however, my rates have still increased?
Some events were cancelled in 2022 due to the significant financial challenges being experienced by the Council which are ongoing. The Councillors had requested that the budgets be reviewed to focus on the provision of core and statutory services.
These savings were absorbed in-year (2022-2023 financial year) and have no impact on the budget and subsequently the rates for the 2023-2024 financial year.
The Council will continue to review the provision of discretionary services, for example, events, in light of the financial challenges.
6. How much money will be generated for the Council by the 2023-2024 rates bill?
It is estimated that £41.2 million will be raised through the rates in the 2023-2024 financial year.
7. This is the highest increase set by the Council, why?
The rate reflects the significant inflationary and external cost pressures which impact on the cost of delivering services. This has not been experienced since the Council was established in 2015.
8. Why does my rates bill increase every year?
The Council is a service based organisation and, similar to all service providers, there are costs to deliver these services which increase on a yearly basis. This year the Council is also facing unprecedented financial challenges as a result of inflation which impacts on supply costs including energy, labour and materials.
The Council is also facing a reduction in the annual Rates Support Grant which is provided by Central Government through the Department for Communities. The Rates Support Grant provides the Council with financial assistance which helps to minimise the impact of the rates on ratepayers.
The ongoing financial challenges and cost increases which the Council is required to meet contribute to an increase in the rates to enable the Council to continue to deliver core services as well as a range of additional services for the benefit of residents and businesses. These challenges have not been experienced by the Council since it was established in 2015.
Any reduction in the District rate could impact on services, for example, the closure or reduced operation of venues and facilities; Grant Funding which supports local community groups and businesses could be reduced; and there could be job losses.
9. Who sets the rates and how are the rates calculated?
The District Rate is set by the Council and it is approved by the Councillors at a Special Council meeting in February each year. Councillors, with assistance from Officers, review the budgets for service delivery and the capital programme as well as income received to strike the rate.
The Regional Rate is set by the Northern Ireland Executive and the Council has no input to this process.
The District rate and the Regional rate are combined and multiplied by the rateable value of your property to determine your rates bill.
The Department for Finance have a Rates calculator to allow you to work out your Rates bill – https://www.finance-ni.gov.uk/services/rates-calculator
10. Does the Council receive the full amount paid through the rates
The Council receives approximately 45% of the income raised through rates and the remaining 55% is paid to Central Government. The allocation of rates to the Council is determined by the increase in the District rates agreed by the Council on an annual basis. To receive a greater proportion from the overall rates bill, the District Rate and Rates Bill would have to increase.
11. Why is there a District rate and a Regional rate?
The District rate is set by the Council to pay for the delivery of local core / statutory services including Waste Management, Environmental Health (including food Safety, Health and Safety, environmental improvement, Home Safety, Consumer Protection, Animal Welfare and Dog Control and Tobacco Control), Registration, Planning, Building Control and cemeteries
The Council also provides a number of additional services for the benefit of residents and businesses and to enhance the District. These services include the provision of household recycling centres; street cleansing; public conveniences; parks and play parks; Off Street Car Parking (car parks); tourism development; community events; community support services including grant funding; leisure and recreation facilities; arts, cultural, heritage and tourist facilities; and capital projects etc.
The Regional rate is set by the Northern Ireland Executive to contribute to the delivery of services including roads, education, health, emergency services, law and order and social services. The Council has no input in this process.
12. How does the Council decide on its priorities for expenditure from the rates received?
The Council’s priorities are set out in the Fermanagh and Omagh Community Plan 2030 and the Council’s Corporate Plan 2020-2024. The Councillors prioritise expenditure on the delivery of core and statutory services including Waste Management, Registration, Environmental Health, Planning and Building Control. which it is legally required to deliver as well as a range of additional services and investment projects to enhance the District and invest in the community.
13. I only get my bins collected, what else is my rates spent on?
The rates received by the Council are used to deliver local core / statutory services including Waste Management, Environmental Health (including food Safety, Health and Safety, environmental improvement, Home Safety, Consumer Protection, Animal Welfare and Dog Control and Tobacco Control), Registration, Planning, Building Control and cemeteries.
The Council also provides a number of additional services for the benefit of residents and businesses and to enhance the District. These services include the provision of household recycling centres; street cleansing; public conveniences; parks and play parks; Off Street Car Parking (car parks); tourism development; events; community support services including grant funding; leisure and recreation facilities; arts, cultural, heritage tourist facilities; and capital projects etc.
The rates also contribute to the delivery of a Capital Programme and Capital Grants, supporting investment in our communities.
The Regional rate is set by the Northern Ireland Executive to contribute to the delivery of services including roads, education, health, emergency services, law and order and social services. The Council has no input in this process.
14. The roads, pavements and grass verges are not maintained and our roads are not gritted in Winter. Can the Council address these issues?
The Council is not responsible for roads infrastructure including pavements and grass verges or Winter gritting. The Department for Infrastructure is the responsible body for these services.
15. Why does the level of rates vary between each Council?
All Councils set their own rates depending on their priorities. The legislative date for striking the rate is 15 February each year.
16. I have heard the Council has money in reserves, can this be used to deliver services rather than increasing the rates?
The majority of Council’s reserves have been established under relevant legislation to fund future specific expenditure. The Council has and continues to use available reserves to minimise the impact on ratepayers.
17. Who has to pay rates and what if I cannot afford to pay?
Domestic (household) rates bills are issued on all residential properties in Northern Ireland. Land and Property Services have rates reliefs available for some homeowners who are entitled to help with paying rates. https://www.nidirect.gov.uk/articles/apply-housing-benefit-and-rate-relief-homeowner
Non-domestic (business) rates are required to be paid on business properties, unless they are registered for charitable or religious purposes. Land and Property Services have a number of reliefs available to business ratepayers https://www.finance-ni.gov.uk/topics/property-rating/non-domestic-rating
18. I am renting my accommodation, who is responsible for paying the rates bill?
The owner of a rental property is responsible for paying the rates bill.
19. When do I receive my rates bill and how can I make payment?
Land and Property Services generally issue rates bills in April each year. It is also responsible for collecting rates monies. Payment can be made in one lump sum or by direct debit over 10 months. Information on how and when to pay your rates as well as support which is available is detailed on your rates bill.
20. What is a rates revaluation and what impact does this have on my rates bill?
NIReval 2023 is a revaluation of non-domestic properties to bring the rateable values into line with property rental values. It helps to ensure that business rates stay up to date and reflect economic, social and environmental changes by distributing the rates liability equitably and fairly across all sectors.
Land and Property Services have contacted all non-domestic ratepayers in relation to the impact of the NIReval 2023. Since 2020, the value of your business property will have increased, decreased or stayed the same and this is separate to any increase in District or Regional rates increases each year.
The impact on individual rates bills will be included in your next rates bill.
21. I have a query about my rates bill, who do I contact?
Rates are managed by Land and Property Services, therefore, if you have a query you should contact them on 0300 200 7801 or visit https://www.nidirect.gov.uk/contacts/rates-land-property-services.
22. I have a query about the value of my property, who do I contact?
Rates are managed by Land and Property Services, therefore, if you have a query you should contact them on 0300 200 7801 or visit https://www.finance-ni.gov.uk/topics/property-valuation.