07 October 2005 Fairer Domestic Rating System A Step Nearer Says Rooker
Plans to make the rating system fairer by basing rate bills on the capital value of your home from April 2007 are well underway, the Finance Minister, Jeff Rooker, confirmed today.
The Minister was commenting as the Department of Finance & Personnel published the draft Rates (Capital values, etc.) (Northern Ireland) Order 2005 for consultation, along with a consultation report and final Integrated Impact Assessment on charitable exemptions and reliefs. Launching the 12-week consultation, he said:
“The draft Order represents a key milestone on the path to making the rating system fairer, a process started by the former Northern Ireland Executive in 2000. It provides for the publication of the capital values of all domestic properties in Northern Ireland. These values will be the basis upon which rate bills will be calculated from April 2007 onwards.“Publication will take place in April 2006, and will ensure that ratepayers have an opportunity to find out more about their capital value, well before the new fairer rating system comes into effect and rates bills issue in April 2007.
“It is essential that ratepayers have as much information as early as possible, given the fundamental changes we are making. This will help to increase their awareness and understanding of the changes, and will provide a sound basis for taking forward all of the reforms to be introduced from April 2007. The reforms include the new rate relief scheme for those on low incomes, transitional arrangements over a three-year period and a new independent valuation tribunal. They will be given effect through a second Order in Council, to be brought forward next year.”
Stressing the need for change, he said:
"Reform is vital to bring the domestic rating system into the 21st century. We need to make it fairer and easier for ratepayers to understand. The new capital values will achieve this. It is almost 30 years since domestic property in Northern Ireland was last re-valued. Delay is therefore not an option.”
As well as advancing the domestic reform agenda, the draft Order also provides for a number of changes to the non-domestic rating system, as set out in the consultation report on charitable exemptions and reliefs published today. Spelling out the changes to be made through the draft Order, the Minister said:
"Not only do we need to modernise the domestic rating system, but there is also further work to be done to bring the non-domestic system up to date.
“The exemption of community halls from rates and the increase in the level of sport and recreational relief from 65% to 80% are the first in a series of further planned measures developed under the Review of Rating Policy with this objective in mind. By including these in the draft Order, we are taking the earliest possible legislative opportunity to ensure that they can be introduced in April 2006.
"The award of full exemption to community halls will be conditional on them being made available for use by the wider community, on not having a liquor licence and not being occupied by a registered club. This will ensure that assistance is directed towards organisations unable to generate income to assist with the payment of rates.
“Our intention is that this measure will promote a greater level of community spirit while easing the rate burden on community based organisations.
"Further work will be taken forward on a number of other proposed changes to the current charitable reliefs and exemptions, and the remaining decisions set out in the consultation report. These include the extension of partial relief to houses owned by ministers of religion and other similar clergy from April 2007, which will be contained in legislation to be brought forward next year."
The Minister called on those interested in, and affected by, the changes addressed in the draft Order to respond:
"We have already consulted widely on the proposed changes in the draft Order, and this is a further opportunity for interested parties to express their views, specifically on whether the draft legislation adequately reflects our policy intentions. This is essential to the process of finalising the detail before the legislation is considered by Parliament early next year and to our overall aim of making the rating system in Northern Ireland fairer."
NOTES FOR EDITORS
1. Consultation on reform of the domestic rating system took place in 2002 and in 2004. The Government subsequently published a consultation report in July 2004 confirming that a discrete capital value system would be introduced from April 2007 and set out the next steps for reform. These include the introduction of a rate relief scheme for those on low incomes and just above the housing benefit threshold, transitional relief over a three-year period for those experiencing the most significant increases under the new system and the introduction of a new independent valuation tribunal.
2. The draft Order provides for the determination, publication and revision of the capital values of every domestic property in Northern Ireland. Publication will take place in April 2006 via the Valuation and Lands Agency website. Ratepayers will also receive an individual notification of their capital value assessment, which is likely to include property attributes on which the assessment is based such as the size and type of property, number of rooms, etc.
3. The draft Order also provides for two changes to existing non-domestic exemption and relief provisions, which were subject to consultation earlier this year. Having taken account of the views expressed during consultation the Government today published its consultation report on charitable exemptions and reliefs. This sets out the way forward in this area and includes the exemption from rates for community halls, subject to certain criteria, and an increase in the level of sport and recreational relief from 65% to 80%. Both of these measures are to be given effect in the draft Order and will be introduced from April 2006. The remainder of the changes will be dealt with in legislation to be introduced in April 2007 and include extending partial relief to houses owned by ministers of religion and other similar clergy.
4. The consultation documentation on the draft Order includes a short policy overview setting out the key issues, the draft Order itself and the associated Explanatory Memorandum. Both it and the consultation report and final Integrated Impact Assessment on charitable exemptions and reliefs are available on the Internet at: www.nics.gov.uk/ratingpolicy.
After the 12-week consultation, which ends on 30 December, it is intended that the draft Order will be finalised, taking account of the views expressed, and laid at Westminster early in the new year.
