16 March 2005 Minister Launches Consultation on Policy Proposals for Business Relief from Rate Liability in Northern Ireland
The Finance Minister, Ian Pearson MP, has announced a 16-week consultation on policy proposals covering the business, rural and equine sectors.
Launching the Government’s Policy Paper today, the Minister said:
“We have already made significant changes with the introduction of the rating of unoccupied non-domestic property (except for empty factory buildings) from 1 April 2004 and the phasing out of industrial derating over a long period beginning in April 2005.
“Later this year we are introducing assistance, through the rating system, to provide relief for businesses that suffer hardship due to exceptional circumstances. To continue this work I have decided to extend the review of rating policy to the area of business reliefs. This Policy Paper contains proposals on whether existing reliefs should be retained as well as proposals for introducing a number of new reliefs.”
Mr. Pearson said that during the public consultation exercise on the Review of Rating Policy launched by the former Executive in 2002, views were put forward on the need for reliefs for small businesses, farm diversification and the equine industry.
“This paper details policy proposals on the future treatment of these issues,”he explained,
“along with others covering relief for the quarry industry, automated teller machines (ATM’s) in rural areas and freight transport. The paper also deals with the issue of Business Improvement Districts (BIDs), which in future may require the use of the rating system as a mechanism for collecting additional business contributions for local regeneration initiatives.
The Minister stressed that it is important that interested parties take the opportunity to contribute to this area of rating policy by responding to the Government’s proposals, while adding:
“There is a need to strike a reasonable balance in applying reliefs between providing effective incentives to the business community in Northern Ireland and minimising the cost to other ratepayers, businesses and indeed householders.
“To do otherwise would reduce the money that would be available through the rating system to invest in public services and infrastructure here. This money is needed to build and sustain a modern economy, which is the best way of creating the right environment for business success.”
NOTES TO EDITORS:
1. On 27 May 2002, the then devolved Finance Minister, Dr Seán Farren MLA, announced the Review of Rating Policy. This had been identified in the Executive’s Programme for Government in 2000 and its scope and terms of reference agreed in 2001.
2. As part of the ongoing Review, the Government is proposing a number of policy changes in relation to business reliefs. The proposals are:
· To review the rationale for the introduction of a small business rate relief scheme in Northern Ireland in 12 time, but not to introduce a scheme at this time;
· To introduce a farm diversification scheme along the lines operating in Great Britain;
· To introduce relief for stud farms along the lines operating in Great Britain, but not to provide further reliefs for the equine industry until a cohesive strategy is in place and a case has been made based on evidence of need;
· To provide exemption to encourage the growth of automated teller machines (ATMs) in rural areas;
· To provide relief for quarry operators that undertake environmental improvement works;
· To retain freight transport relief at its current level for the time being; and
· To allow the rating system to be used as a billing, collection and recovery mechanism for Business Improvement Districts or similar local regeneration initiatives;
3. The consultation period ends on 8 July 2005.
4. The policy paper and a separate initial Integrated Impact Assessment are available on the Rating Policy website: www.nics.gov.uk/ratingpolicy/
