Finance Minister, Dr has today set out a
strategic roadmap for the local rating system.
Updating MLAs in the Assembly the Minister outlined her plans
which include:
- Undertaking a comprehensive Strategic Review Cycle of all
rates support provided within the system, initially prioritising
the policies of Small Business Rate Relief Scheme and
Non-Domestic Vacant Rating exclusions.
- Commissioning research on the cost of doing business.
- Launching a consultation in January 2025 on proposals to
reduce the Early Payment Discount from 4% to 2% and elevating the
level of the Maximum Capital Value on domestic properties from
£400,000 to £485,000.
- Commencing preparatory work on a new domestic revaluation
which would see over 800,000 domestic properties assessed and
revalued.
Speaking in the Assembly, Dr Archibald said: “Today kick
starts a vital process of work required to build a progressive
rates system based on the principles of fairness
and equity, which aligns and underpins Executive priorities,
stimulates our economy and supports the growth of our taxbase by
creating the conditions for businesses to
thrive.
"The rating system is the Executive's main lever to
generate revenue and is critical for the funding of our public
services, raising in the region of £1.5 billion annually. Rate
relief provides important support to thousands of businesses and
households. We must therefore ensure supports are targeted
towards those who need it most or those who are vulnerable, and
that any rate reliefs are meeting their policy
objectives. The more revenue
spent on rate support, the less there is for vital public
services.
“I am therefore committing to reviewing every single
rating support measure within a Strategic Review Cycle. To be
clear review does not mean removal. The process I have announced
is about ensuring the support we have in place is achieving the
desired policy outcome and using the resources we have to best
meet the needs of our citizens and businesses.”
Outlining her determination to supporting businesses, Minister
Archibald added: “I have engaged with
the business community and have listened to the challenges posed
by the cost of doing business, post-Covid and in light of the
added impact of the Chancellor's Autumn Budget.
“That is why I have prioritised the policy areas of the
Small Business Rate Relief Scheme, including assessing its
ability for enhanced sectoral targeting, and
Non-Domestic Vacant Rating exclusions given the concerns over
vacant properties in our towns and cities. Preparatory work will
commence in the New Year to allow those reviews to progress as
quickly as possible in 2025/26.
“I am also commissioning research on the cost of doing
business here. This will help us better
understand the issues facing businesses.”
Concluding the Minister said: “The plans I have set out
lay the foundations to create a rates system that is sustainable
and fairer.
“I am determined to deliver on this process to ensure the
rates system is delivered efficiently and effectively, grows our
taxbase and provides appropriate support for those who need it.
Today is an important step in that journey.”
Notes to editors:
- A copy of the Minister's statement to the Assembly can be
viewed at https://www.finance-ni.gov.uk/publications/minister-finance-oral-statement-rating-policy-strategic-roadmap
- Early Payment Discount – in the last full rating year 2023/24
over 163,000 ratepayers availed of the discount. The proposed
reduction in the discount from 4% to 2% would generate a further
£4million in annually recurring savings for the Executive.
- Proposed changes to Maximum Capital Value – there are over
8,000 properties in total above the current cap threshold of
£400,000. The proposal to elevate the maximum capital value to
£485,000 would see these properties' bills increase between
£14.23 and £18.15 per week depending on the council area in which
they are located and would generate an additional £2million in
annually recurring revenue for the Executive.
