Derry City and Strabane council is considering legal action over Stormont funding cuts that could lead to rate increases and the axing of services, it has been confirmed.
The council said it is drawing on cash reserves to plug a multi-million pound budget hole in light of planned cuts to a 'Rates Support Grant' from Stormont.
Seven councils in total receive funding from the Rates Support Grant, designed to support the least wealthy and most rural or deprived council areas.
