Published Wednesday, 01 February 2012
A planned revamp of the Waterfront Hall has been welcomed by business groups. (© UTV)
The hike, which was approved by Belfast City Council on Wednesday evening, will see the average weekly bill go up by 35p for homeowners and £2.86 for businesses.
Funds raised will go towards a wide range of projects aimed at positioning Belfast as a key visitor destination within Europe.
These include a £20m revamp of the Waterfront Hall, work on a green economy business park on the North Foreshore site and an innovation centre in Springvale in the west of the city.
It is expected the scheme will deliver 200 jobs in the council and potentially hundreds more in construction over the next three years.
Councillor Deirdre Hargey, Head of the Strategic Policy and Resources committee, called it the most significant investment in the city in almost four decades.
She said: "It is our commitment to address the economic downturn in Belfast and we believe it is the most significant initiative since Belfast Corporation was replaced by Belfast City Council in 1973.
"We will invest £75m towards facilities for local communities and a further £75m to support major partnership projects, local regeneration and key sectors such as tourism.
"Because we have worked hard to ensure that the council's running costs will not rise, all of the money raised by the rates increase will allow us to support the investment programme with £20m.
"This, in turn, will enable us to lever in money from other sources, including Europe, to ensure real value for money for our ratepayers.
"At the same time, we pledge to continue to deliver the level of efficiencies we have achieved in recent years, reaching £20m of savings by 2015. This is a win-win situation."
The investment scheme has been welcomed by the NI Independent Retail Trade Association.
Chief Executive Glyn Roberts said: "While this Economic Package will require a small increase in Business Rates, we believe it is a price worth paying for a sound investment in the future economy of Belfast.
"Belfast should be attracting more conferences and we feel certain that the new convention centre at the Waterfront Hall will further incentivise conference organisers and business tourism."
Meanwhile Nigel Smyth of business organisation CBI said: "The council is to be congratulated on its ambitious plans, and how they are leveraging EU funds as part of the overall £150m investment.
"I particularly welcome the emphasis the council has also put on improving efficiencies within the organisation to help deliver this investment, while keeping rate increases to a minimum."