Hain adds £1 a week to rates in the North
Ratepayers in Northern Ireland are to pay £1 (€1.46) extra a week for public services, Northern Secretary Peter Hain revealed today in the North’s budget for next year.
Domestic rates bills are to increase by 19% next year in a bid to raise an additional £20m (€29.5m) in funds for public services for each of the next two years.
They will also increase by 6% in the year 2007-08 as the british government also introduces water charges in the North.
Mr Hain, who announced budget plans for 2006 to 2008 at Belfast’s Science Park, said the North needed to bridge the gap between what ratepayers in the province pay compared to council tax bills in England if funds were to be released.
“Income from domestic rates in Northern Ireland is only half the equivalent figure in Great Britain,” he said.
“Therefore I propose to increase the domestic regional rate next year by 19%.
“This will represent an increase of around £1 (€1.46) per week in the average domestic rates bill but compared to previous plans will raise an additional £20m (€29.5m) each of the next two years.
“This will help meet the costs of the new priority funding packages for children and young people, science and skills and the environment and energy.
“While this is a large percentage increase, the amount householders contribute to local public services here will still be much less than 60% of the average for England.
“That gap will need to be revisited in the future if we want to maintain local public services at the same level as elsewhere.”
The British government has earmarked £16bn (€23.6bn) for total public spending by 2008.
Mr Hain said £45m (€66.4m) would be spent next year and £55m (€81.2m) the following year on new ring-fenced investment in three priority areas.
