Finance Minister Dr has launched a
consultation on proposals to Reduce the Early Payment Discount
and elevate the Maximum Capital Value on domestic properties.
The 12 week consultation will run from 29 January 2025 to 25
April 2025 and is seeking views on:
- Reducing the Early Payment Discount from 4% to 2% for those
who pay their rates bill in a single amount by the specified
date.
- Elevating the level of the Maximum Capital Value on domestic
properties from £400,000 to £485,000.
Dr Archibald said: “The consultation I am launching today
is part of my strategic roadmap to build a progressive rates
system based on the principles of fairness and equity. My aim is
to ensure that rate support within the system is targeted towards
those who need it most and that any rate reliefs continue to meet
their policy objectives.
“The proposed reduction in the Early Payment Discount
takes account of the shift in customers preferences as more
customers now pay their bills by Direct Debit meaning it is the
most efficient way for my department to collect rates.
“The proposals to alter the current Maximum Capital
Value, often referred to as the “rates cap”, would generate
additional revenue at the top end of the taxbase, a more
progressive step than increasing the poundage element for the
whole taxbase to realise the same amount of revenue.
“It is important to highlight that the change to the
rates cap would only apply to 1% of all domestic properties here
and that means-tested and other forms of support are in place for
those on low incomes, regardless of a property's capital value.
This and other measures within the rating system such as Lone
Pensioner Allowance would be adjusted in proportion to any change
in liability.”
The Minister added “I view these
proposals as the start of the process I
announced last month to allow the rating system overall to
becoming more targeted and focused. This will allow the Executive
to ensure that support is fit for purpose or whether that
resource should be redirected elsewhere.
“I would encourage everyone to have their say by
contributing to the consultation and helping to ensure we have a
fairer and equitable rating system which provides support for
those who need it.”
Notes to editors:
- The consultation is available at https://www.finance-ni.gov.uk/consultations/supplementary-consultation-domestic-rating-measures
- 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
£4 million 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 around £5 million in annually
recurring savings for the Executive and local councils.
