Legislation will finalise new rating system from 2007
Legislation will finalise new rating system from 2007
A draft Order, launched for consultation today, is the final piece of legislation in introducing a new domestic rating system, based on individual capital values, which comes into effect here in April 2007.
In announcing the consultation on the draft Rates (Amendment) (Northern Ireland) Order, Finance Minister David Hanson said:
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I consider the draft Order to be of vital importance in finalising the reform of the domestic rating system in Northern Ireland, a process begun by the Executive back in 2001.
“The reforms encapsulated in the draft Order represent major changes to the domestic rating system, and the associated reliefs package will be vital in achieving a system that is fairer and takes greater account of individual circumstances. Indeed, the most notable provisions relate to the new rate relief scheme and transitional relief scheme (which I announced earlier this month) and the establishment of a new independent Valuation Tribunal.
“The rate relief scheme and full relief from rates for properties occupied solely by those in full time training and education, 16/17 year olds and young people leaving care are designed to provide assistance to those most in need. The transitional relief will help smooth the move to the new system for those most adversely affected by the changes, that is whose rate bill increases by more than 33% over and above what it would otherwise have been under the current system”.
The Minster also pointed out that the draft Order contains a number of important provisions that will give effect to further reform in the non-domestic rating system.
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The draft Order provides for a number of rate reliefs that will target assistance towards businesses in rural areas.
“To assist diversification out of agriculture, 50% relief from rates will be provided for small new enterprises located in buildings that were previously agricultural. All automatic telling machines that are valued separately in the valuation list and located in rural areas will be exempt from rates.’’
The Minster went on to highlight the need for active consideration of the draft Order by interested parties.
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While we have consulted widely on many of the provisions contained in the draft Order, this consultation exercise is slightly different in that it is about whether the draft legislation gives effect to our policy intentions. It provides a further opportunity for interested parties to comment. I would welcome all contributions before consultation ends on 15 September.”
Notes to editors:
- Consultation on the key polices associated with rating reform took place in 2002 and 2004. The Government subsequently published a consultation report in March 2005 confirming that a system based on individual capital values would be introduced from April 2007 and set out the next steps for reform. These included many of the provisions contained in the draft Rates (Amendment) (Northern Ireland) Order 2006. The purpose of this consultation is to ascertain whether the draft Order effectively reflects the policy intentions.
- The draft Order provides for:
a new rate relief scheme for those on low incomes;
full relief from rates on properties occupied solely by those in full time training and education, 16/17 year olds and young people leaving care;exemption from rates on University halls of residence;
a 25% reduction in rates where a property is modified to meet the needs of a person with a disability;
a transitional relief scheme for those whose rate bill increases by more than 33% on moving from the rental to capital value system;
standardisation of rates liability in the social rented sector;
a new independent Valuation Tribunal, which provides ratepayers with an additional stage through which they can appeal their Capital Valuation;
enabling powers that will allow a future Executive to introduce a maximum or minimum payment, a deferment scheme for people of pension age, the rating of vacant domestic property and a policing precept; and
non-domestic reliefs focusing on rural businesses. - The consultation document on the draft Order includes a short policy overview setting out the key issues, the draft Order itself and the associated explanatory memorandum. The document is available on the internet at: http://www.ratingreviewni.gov.uk
- Following the consultation exercise, which finishes on 15 September, the draft Order will be finalised having considered the views expressed during consultation on whether the draft Order gives effect to the Government’s policy intention. It will subsequently be laid at Westminster in October.
- The draft Order will come into effect from April 2007.
