Derry City and Strabane District Council has approved its budget for 2026 to 2027, confirming a 4.48% rise in the District Rate to sustain essential services and accelerate a significant pipeline of investment across the area despite ongoing economic pressures.

The decision means an average domestic rates bill will go up by £27.79 for the year, equivalent to around 53 pence per week for the typical household.

The rate was agreed at a Special Meeting of Council on Monday, 9 February 2026. Elected Members said the settlement seeks to balance cost-of-living challenges faced by residents with the need to maintain critical frontline operations and deliver a wide-ranging capital programme.

Presenting the detail to Members, Lead Finance Officer Alfie Dallas outlined that the 4.48% uplift is made up of two parts: a sub-inflationary 2.68% baseline increase to meet statutory and inflationary pressures, and a further 1.8% targeted at growth and new service development, with an emphasis on the Council's ambitious capital programme and strategic leisure schemes.

He said the baseline element reflects higher costs for energy and utilities, waste contracts, maintenance and materials, and allows for employee pay awards in line with wider cost-of-living impacts. Additional investment is also required to offset reductions in government grant support and to meet rising demand and resourcing needs in key frontline services, including licensing, planning, building control, animal welfare and a new waste collection crew to serve recent housing growth across the District.

-- Advertisement --

Mr Dallas noted that the Council area has the lowest average property values in Northern Ireland. As a result, it must set a higher rate poundage than more affluent regions to raise the same level of income, even though lower property values mean average bills here remain below most other councils. He said the Council will continue to press for government policy changes, including reinstatement of the Rates Support Grant, to protect ratepayers in less wealthy districts.

Despite the financial headwinds, Members were told this year's budget reiterates a strong intent to invest for the long term, with the Council's core focus on progressing an unprecedented £711 million capital investment programme.

The 1.8% investment in growth includes new capacity within the City Deal team to drive social value, benefits realisation and inclusivity across the £307 million programme, alongside dedicated resources to implement the Council's poverty action plan.

With design teams appointed for two flagship strategic leisure projects in Templemore and Strabane, and masterplans, facility mixes and scopes now endorsed, the budget provides for up to £120 million in funding to move both schemes into detailed design, consultation and planning phases.

Mr Dallas also confirmed continued support for community capital projects, including a further £1.4 million in Council match funding aimed at unlocking £12.6 million from government through the Shaping Sustainable Places initiative. This will deliver a range of capital improvements across the District.

Projects already approved and in progress include the DNA Museum, Strabane Public Realm works, Riverine, 3G pitch refurbishments at Foyle Arena, Bishops Field and Leafair, floodlighting at Melvin Arena, the Derg Active project, nine new or upgraded play parks, new community centres at Glenview, Springhill and Ballymagroarty or Hazelbank, completion of the new cemetery at Mullenan, and greenway lighting at Foyle Valley Road, Drumahoe Road and Bay Road or Boomhall.

In addition, £1.1 million in one-off, non-recurrent funding has been earmarked in this year's rate for priority initiatives. This includes £300,000 to refresh Christmas lighting, £600,000 for a pilot sports development grant scheme, and a further £200,000 to enhance programming and marketing for the city's world-renowned Halloween festival, which celebrates its 40th anniversary in 2026. The event is the largest of its kind in Europe and attracts more than 120,000 visitors; planning is already under way to make this year's edition even bigger.

For non-domestic ratepayers, and following the postponement of the Northern Ireland revaluation of non-domestic properties, the 4.48% increase sets the non-domestic district rate at 41.3735 pence in the pound. Many businesses continue to benefit from reliefs: 14% of the District's 5,672 non-domestic properties are fully exempt from rates, 40% receive Small Business Rate Relief A