‘Grave concerns’ over Antrim and Newtownabbey’s rates income

For every £1m deficit, it is feared residents could be faced with an additional two per cent rate increase in the next financial year, councillors were told.

The council also does not “foresee any recovery to meaningful income levels in leisure, arts and culture in this financial year”.

The closure of council facilities on March 18, combined with reductions in planning and building control activity, has resulted in an immediate estimated loss of £750k income monthly.

Meanwhile, the council anticipates an estimated gross spend of £66m for the 2020/21 financial year including an estimated £14m of grants and earned income, so requires the sum of £52m to be raised through the rates process.

A 1.99 per cent increase in the district rate was approved in February.

Members were advised that unless measures were put in place now to “mitigate the deficit situation and to make up for the potential loss in rate income in 2020/21, it was anticipated that there would be a substantial rate increase next year (2021/22)”.

They also heard there had been a “significant financial impact in relation to the decisions that had been made by council to maintain public safety during the emergency period and additional costs incurred to comply with government directions as a result of the pandemic”.

Councillors were told the use of financial reserves was “not a solution to the current financial challenge”.

DUP Councillor Stephen Ross’s objection to the continuation of the crematorium project at an estimated cost of £5m was noted.

Members were told the council’s overdraft limit with the bank had been increased but this was a “temporary arrangement that had been put in place to ensure that staff and suppliers continued to be paid”.

However, they were advised this would “not be sustainable beyond the end of June 2020 without immediate intervention or remedial action”.

At that point, they heard, the council would “need to consider sourcing finance using other mechanisms potentially in the form of additional loans”.

Michelle Weir, Local Democracy Reporter

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