Belfast City Council rates set for increase of 7.99%

Household rates in the Belfast City Council area are set to increase by 7.99% in 2023-24.

Councillors on the strategic policy and resources committee voted in favour of the increase at a meeting earlier.

The move still needs to be ratified at a sitting of full council on 1 February, but this is likely to happen.

The money generated by rates is used to pay for public services, with bills decided against the value of a property.

Rates are set at a regional level each year by Stormont and a rate is then also decided at a district level by each council in Northern Ireland.

The regional rate covers regional services such as hospitals and roads maintenance, while the district rate covers services like leisure centre facilities and waste management.

The news comes after a former head of the civil service warned of the possibility of further significant rates increases.

Sir David Sterling spoke of a "deep frustration" among civil servants, saying they were going to have to manage "huge budgetary pressures in the current financial year" in the absence of a devolved government.

"I'm guessing the total pressures the Department of Finance are wrestling with now are in the region of a billion pounds," he said.

Speaking on BBC Northern Ireland's The View, Sir David made reference to former Secretary of State Peter Hain, who increased the regional rate by 19% in 2005 during a period of direct rule.

"That was in a sense almost saying if the people of Northern Ireland won't govern themselves I'm going to take some tough decisions," he said.

He said he would not be surprised if similar measures were introduced again.

The latest rates rise follows on from a 2.99% increase in rates in Belfast for 2022-23.

Earlier this week, leaders of the five main political parties signed a joint letter calling on the Department of Communities permanent secretary Colum Boyle to increase financial support through the Rate Support Grant.

They said they had concerns ratepayers would face further financial pressure if councils increased rates.

The letter was also sent to Secretary of State Chris Heaton-Harris.