28 April 2006 Rooker outlines the way forward on rate reliefs for businesses in Northern Ireland
Finance Minister, Jeff Rooker, has announced how Government will apply rate reliefs for businesses in Northern Ireland.
He was commenting following the publication of a report on further reform to the non-domestic rating system here. The document summarises views expressed during the public consultation on rate reliefs for business and sets out Government’s response. The main reforms to be introduced are:
·A Farm Diversification Relief scheme along the lines operating in Great Britain;
·Exemption for all automatic telling machines (ATMs) in rural areas that are included as separate entries in the valuation list;
·Relief for quarry operators who undertake environmental works; and
·A change to existing unoccupied non-domestic property legislation to assist local enterprise agencies.
The Minister explained the thinking behind each of the decisions:
“The policy paper on rate reliefs for business, published for consultation during 2005, invited responses on a range of measures intended to support businesses, particularly those in rural areas.
“In proposing these measures, Government took account of the need to strike a reasonable balance between providing effective incentives to the business community and minimising the cost to other businesses and domestic ratepayers who have to pay for them.
“Substantial support was expressed during the consultation for the range of reliefs that the Government proposed and I can now announce that I have decided to move ahead by including a number of these in legislation planned for introduction in April 2007.
“The proposed farm diversification scheme is in keeping with schemes operating in Great Britain and will provide an incentive to reduce dependency on agriculture.
“I believe that providing exemption for all ATMs in rural areas that appear in the valuation list will greatly help to sustain and also encourage this important service, particularly in more remote locations.
“It is also very important to ensure that Government policies are aligned whenever possible and our decision to provide relief to quarry operators who carry out environmental improvements does this by aligning with Northern Ireland policy on aggregates levy.”
In recognition of the unique circumstances within which local enterprise agencies (LEAs), whose purpose is to stimulate and assist industrial development, have to operate when compared to other businesses,the Minister said:
“We will introduce a change to the existing unoccupied non-domestic property regulations to extend the exclusion period from rates from three months to one year for these organisations. In addition new build LEA property will also be removed from the completion notice procedure.”
He said that Government had decided not to proceed with the introduction of other proposals contained in the policy paper at this time.
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Government has taken note of the wide support for introducing a small business rate relief scheme in Northern Ireland, but considers it important in the first instance to examine the effectiveness of the schemes introduced in England and Scotland.
“This will allow us to make an informed decision on whether to introduce such a scheme here. The Government has therefore decided to look at this issue again during 2007, by which time information on the impact of the scheme operating in Great Britain should be available.”
Turning to the case for stud farm relief and the re-designation of the horse as an agricultural animal, Jeff Rooker said:
“We need to see the completion of the cohesive development strategy for the equine industry to ensure that future rating policy aligns and complements any initiatives that will emerge. I have concluded therefore that it is sensible to await the outcome of this before policy decisions are taken on these matters.
“Government has decided also to time limit the reliefs to be taken forward through the primary legislation to a period of three years, but with the possibility of further extension to be decided by a future Northern Ireland Executive. This will ensure that the continued relevance and effectiveness of these reliefs will be subject to open and full scrutiny, thus protecting the interests of other ratepayers.”
The Minister welcomed the outcome of the public consultation, adding:
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The consultation on these aspects of the review of rating policy marks another important milestone in progressing rating reform in Northern Ireland. We believe that this is a sound and balanced package of measures that align well with wider policy initiatives, but do so without putting an unacceptable burden on those businesses and householders that are liable to pay full rates.”
