A RATES exemption for purpose-built student accommodation that is costing the public purse millions of pounds every year will continue until either the assembly or secretary of state changes the rules, the Department of Finance has said.
The department first recommended ending the exemption in 2016, however, the plan was never implemented because Stormont has sat for only two years since – much of that during the Covid pandemic.
The Irish News revealed that more than £4 million a year in revenue for cash-strapped public services is being lost in Belfast because of a failure to plug what one councillor described as a "loophole".
The privately-run, purpose-built student accommodation in Belfast has expanded rapidly in recent years but in common with traditional university-owned halls of residence in the city, none of the facilities – which house up to 750 students – pays rates.
Belfast City Council, which is understood to foot the £100,000 bill for bin collection at privately-owned student accommodation, is this week expected to approve an 8 per cent increase in the district rate.
Calls from SDLP councillor Carl Whyte for the exemption to end were echoed.
People Before Profit MLA Gerry Carroll said the failure of the big student accommodation providers to pay rates was a "slap in the face for hard-up households" facing potentially record hikes in their bills.
“Private property investors and universities are pocketing huge sums at public expense – it shouldn’t be allowed,” he said.
“Political parties who maintained this loophole are the same who voted to hike Belfast residents’ rates by 8 per cent in the middle of this cost-of-living crisis."
Belfast Alliance councillor Emmet McDonough-Brown said: "At a time of tight financial budgets it is essential that we as councillors ensure proper use of public money – this includes ensuring those using council services pay fairly for them.
"I think it’s time this exemption was reviewed to ensure the burden on existing ratepayers is kept to a minimum."
But according to officials, ending the exemption would require legislation to passed by the assembly or, at the secretary of state's behest, at Westminster.
