Ms Sinéad O'Gorman:

A local authority which is not undergoing a revaluation process is not subject to a rate limitation order. Therefore, it can adjust its ARV upwards or downwards as it sees fit to earn a certain income from rates. The local authorities which are subject to a rate limitation order because there was a revaluation in the previous year have no flexibility and there will inevitably be a loss. They will be limited by the value in the rate limitation order and the ARV will have to be set in accordance with it. This will give them a little more flexibility. The amount in the rate limitation order will take account of a percentage for leakage and will be a little higher. It is the upper limit to which they can raise rates, but it will give them the flexibility to do so which they currently lack.