Council aiming for Net Zero by 2050 hopes new gas power plant will help fill income black hole as it hikes rates 10%

On Monday night, the council agreed an increase in the domestic district rate of 9.78% for 2024/25. They say this will mean an average weekly increased charge of £1.39 (or £72.03 per year) for homes valued at £110,361.

The non-domestic district rate will increase by 11.86% – the council says that means an average change of £18 per week per small retail unit or £51 per week for a hospitality premises.

Last week, the News Letter reported that the council was apparently blindsided by a recent notification from Land and Property Services about a potential cut in the rates paid by the Kilroot power station. The changes at Kilroot have been widely reported for years – but despite that – the council yesterday described the rates shortfall “unexpected and sudden”.

The plant had previously been coal powered, but is shifting to cleaner (but still fossil fuel based) electricity production methods.

The council says the rates income from Kilroot “will be temporarily reduced by approximately £1.7m, which equates to an estimated impact on Mid and East Antrim’s forecasted rate projections for next year of 2.7%.

“EPUKI is currently developing the site as part of the wider Kilroot Energy Park masterplan, and rates receivable from Kilroot will be reduced significantly during this period.

However they hope that new gas-fired electricity production plant will “provide significant rates for Mid and East Antrim soon”.

A Department of Finance spokesperson said “Rating valuations are based upon an estimate of rent at a fixed valuation date, currently set at 1st October 2021. In the case of power stations the estimated rent, known as Net Annual Value is based on the receipts and expenditures associated with occupation of the property at the valuation date. Among many other factors considered is the physical infrastructure in situ, and how that influences the ability to generate income. Land & Property Services (LPS) is currently considering the potential impact on the Net Annual Value of the works underway to convert Kilroot from coal fired to gas generation.”

The power station will operate Open Cycle Gas Turbines (OCTGS) and a ‘Multi-Fuel Combined Heat and Power Facility’.

In 2019 Mid and East Antrim council passed a climate change motion and “committed to becoming a carbon-neutral organisation” and “working with partners to reduce our borough’s net carbon emissions”. They aim to ‘support the borough to net zero’ by 2050.

The local authority also blamed its rates hike on additional projected council running costs of almost £12.2m over the next year due to a wide range of financial pressures, including soaring energy bills, rising staff costs, waste management fees and vehicle provision and maintenance.

The council will also make “changes to staffing structures and investment in services to boost efficiency and value for money at Council”.

The authority says it will make savings of £6.85m in the next financial year to meet the agreed budget – “with all spend of public money subject to enhanced and more robust scrutiny, accountability and transparency measures”.

A spokesperson for Council said: “It is with deep regret that the rates increase for the year ahead is higher than any of us would want but Council, like so many other public sector bodies, is facing unprecedented financial pressures.

“£6.8m of savings have been identified throughout this incoming financial year, but soaring costs to deliver services and maintain our facilities mean we are in an unenviable position this year of still having to implement this increase to meet the needs of our citizens.

“We are acutely aware of the struggles many people and our businesses are facing within our community and remain focused on doing everything within our power to help and support them, while safeguarding the essential services they rely on.”