Finance Minister Caoimhe Archibald MLA has today outlined a ‘strategic roadmap’ for the rates system in Northern Ireland.
She announced her plans in the Assembly, which included 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.”
Next month a consultation will be launched 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.”
The rise in Maximum Capital Value would see over 8,000 properties have their rates raised to generate an additional £2 million in annually recurring revenue for the Executive.
Archibald has previously expressed her disappointment that she could not get her paper to be discussed at an Executive meeting, despite having support from Sinn Fein, Alliance and the Ulster Unionist Party.
Items can only be added to the agenda if agreed to by both First Minister Michelle O’Neill and Deputy First Minister Emma Little-Pengelly.
The Minister doesn’t need Executive approval to launch this consultation but she cannot implement anything without their approval.
“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.
– Finance Minister Caoimhe Archibald MLA
“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.”
