Background
BACKGROUND TO THE REVIEW
The new domestic rating system came into operation on 1 April 2007 following a review of rating policy commissioned in 2000 by the then Executive and taken forward by Direct Rule Ministers after the suspension of the Assembly in October 2002.
On the 15th May 2007, during the first debate about the new system since the Assembly was restored on 8 May 2007, the Minister of Finance and Personnel, Peter Robinson MP, MLA (who is responsible for rating policy) said:
"I am committed to reviewing the arrangements for domestic rates in Northern Ireland. I intend, in the next few weeks, to bring a paper before the Executive setting out the steps that I propose to take. I agree with the Chairperson of the Finance and Personnel Committee that it is important that rating reform be viewed in the context of how the Executive intend to address the funding of water in Northern Ireland.In the past five years in Northern Ireland, extensive research and consultation has been conducted on the rating issue. In Great Britain, Sir Michael Lyons has recently conducted a lengthy review of local government finance. What is needed now in Northern Ireland is not a lengthy analysis but a short-term review that can deliver changes by next April and consider what further long-term steps should be taken."
The Minister made a further statement to the assembly on 11 June 2007in which he announced the publication of the Terms of Reference for the review as agreed by the Executive and the launch of a 12 week consultation which ended on 31 August 2007.'
Informed by the results of the Public Consultation and the Report from the Committee for Finance and Personnel the Minister is in the process of bringing forward a package of proposals to the Executive for agreement in late November or early December. This process has been accelerated so that some changes can be made in time for billing next year through subordinate legislation subject to the approval of the Assembly. Other changes will take longer to implement and will require primary legislation.'
The Finance Minister Peter Robinson outlined some major changes to the Domestic Rating system in the Assembly today, 27 November 2007
‘Today I am making an announcement about the outcomes of the Executive’s Review of the domestic rating system that was introduced in April this year under Direct Rule. I am pleased to be able to present these outcomes to this Assembly and fulfil a commitment I gave in June. One that I believe, taken together with other recent announcements on the Budget, will demonstrate further our commitment to making a real difference for householders in Northern Ireland.
The Minister outlined the main changes to be made (in order of delivery):
● a 20% single pensioner discount for those ratepayers aged 70 and over living alone;
● an increase in the savings threshold from £16,000 to £50,000 for pensioners under the existing lower income relief scheme;
● measures to improve the take up of reliefs;
● the introduction of a deferment scheme as a choice for pensioners who own their homes;
● a reduction in the maximum capital value;
● the rating of empty homes;
● rebates to encourage the provision of energy efficiency measures for homes;
● further evaluation and consultation on student rate relief and possible alternatives with a view to abolishing it; and lastly
● further work on the option of introducing a derelict land tax in Northern Ireland.
For a full copy of the statement and associated press release see the press release
The outcomes paper providing more detail on the changes is now available
As part of the package of reforms announced by the Minister on the 27th November was a proposal to provide for a 20% discount in rates for pensioners aged 70 or over who live alone. The Department now wishes to consult on how best to take this measure forward, in order that it may be introduced in April 2008.
