07 September 2004 Minister Encourages Public Response to Rating Reform Consultation
Finance Minister, Ian Pearson, MP, has encouraged householders in Northern Ireland to ensure their views on the reform of the domestic rating system are heard during the consultation period.
Mr Pearson was speaking at a seminar organised to explain the reform proposals and how properties will be revalued. He said:
“When I published the Government’s proposals in July, I highlighted the inequity of the current rating system based on outdated rental values. The proposal to revalue property on a discrete capital value basis will modernise the system and make it fairer. This reform is long overdue.
“The new capital value assessments will be produced by the Valuation and Lands Agency (VLA), an organisation with more than 150 years of experience in carrying out valuation assessments. The Agency will utilise a combination of their professional expertise and local knowledge, their unique database of 700,000 domestic properties and their recently acquired Computer Assisted Mass Appraisal (CAMA) system to ensure that the new valuation list is published in 2006.
Turning to the proposals on rating reliefs, the Minister said:
“It is also proposed that the switch to discrete capital values will be accompanied by a new rate relief scheme that will provide assistance to those on low incomes who are just beyond the reach of the existing housing benefit system. I believe that this scheme will be a much more effective way of protecting those least able to pay than blanket reliefs. It will be sufficiently flexible to allow a future Executive and Assembly to target relief at particular groups and at the same time ensure that only those who really need help receive it.
“The policy paper also contains proposals to simplify the Disabled Persons Allowance Scheme by providing a standard 25% rate reduction and to introduce transitional relief arrangements for those who may face large increases in their bills under the new system.”
Expressing his hope for the return of devolution to Northern Ireland, the Minister said :
“This reform process was initiated by local politicians and it is within the context of devolution that I, and my ministerial colleagues, hope that these reforms will be progressed.
“A number of legislative levers have been built into the proposals to ensure that there is scope for a future Executive and Assembly to take fundamental decisions about key aspects of the new system, such as maximum and minimum payments, the scope and overall limit of the new rate relief scheme and the possibility of a deferment scheme for pensioners. ”
Commenting on the consultation process, the Minister said:
“These reforms will affect most households in Northern Ireland and I would encourage the public to give us their views on them. A leaflet will be issued over the next few weeks to all householders explaining the reforms and reminding them about the consultation exercise. I hope that this will stimulate debate and generate more responses, all of which will be carefully considered before we proceed.”
NOTES TO EDITORS:
Proposals on the reform of domestic rating were published on 21 July 2004 and can be found at www.nics.gov.uk/ratingpolicy
The consultation period closes on 12 November 2004.
