Dodds considers financial help for local councils

Finance Minister Nigel Dodds has spoken of the challenges facing public sector organisations in the current economic situation.

He was speaking following a debate in the Assembly on the state of local council finances that focused on the potential impact on councils of reduced revenue levels, unanticipated losses associated with major and long-standing rateable value appeals and mounting collection losses.

Following the debate, the minister spoke of current financial challenges and said: “The economic environment in which we are now operating is posing new and additional challenges to organisations across Northern Ireland and beyond.

“Local councils, like central government; private sector businesses; and indeed many households across the country, are having to deal with the challenge of operating within tighter financial constraints.

“The Executive, which raises funds through the same rating system as councils, also faces major pressures on its finances. We are having to look at more efficient and effective ways of operating to maintain public services.”

The minister met recently with the Northern Ireland Local Government Association (NILGA) and highlighted that he’d found that meeting, and today’s debate, most helpful in better understanding the concerns of councils and the challenges they face.

The minister continued: “Our rating system has served local government well for many years and we enjoy the enviable position of funding local government mostly from locally set taxes. This preserves the independence of local government and drives efficiency.

“However, these are not normal times and I am sympathetic to the difficult financial position that councils find themselves in, particularly as some of these problems are a consequence of the pressures caused by the long overdue modernisation of rating policy and Land and Property Services’ systems, and some of the problems would have been unexpected.

“I have listened carefully to the views expressed and am conscious that councils need to know where they stand in order to strike their rates. I am urgently working on the issue, examining what can be done to cushion the impact of these various matters.

“I have limited scope within the legislation to provide aid to councils; in any case I have to manage my finances in the face of the same challenges. Nevertheless, I will do my utmost to help and I plan to come forward with proposals within the coming days to assist councils at this difficult time.”

Notes to Editors:

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