11 Jun 2007 - Robinson calls for wide input to rating consultation

Mr Robinson announced the review plan during the first Assembly debate on the rating system on 15 May. Today, in a Ministerial Statement, he told Assembly Members that the terms of reference have now been agreed by the Executive, allowing the consultation process to begin:

“I wish to hear the views of ratepayers, local government and a wide range of interest groups about the new system introduced by direct rule Ministers in April this year,” he said.

“Much has been said already, particularly through the media, but I want the focus to be on real evidence of need and the impact the new system is having, as I consider ways of changing the system.

“My immediate focus is on what I can deliver in time for next year’s bills, which is why I intend to keep to a tight timetable, meaning that the consultation must close at the end of August – a period of 12 weeks.”

Confirming that delivering an improved rating system was among his top priorities, Mr Robinson continued:

“This review will be an accelerated re-examination of the new system with a view to ensuring that it provides help to those who most need it, in the best and most effective way possible.

“There is nothing I can do to change this year’s bills, but I would like to deliver an improved system, with extra support in time for next year’s bills. Therefore I will be looking at what can be delivered within the scope of the existing legislation and also for the medium term examining how that legislation could be changed to make further improvements to the rating system.

“I will be asking challenging questions in the search for a better system for domestic ratepayers and also examining the relationship between rates and how we pay for water. These are my immediate priorities.

“At the same time I will listen to views on alternatives to the new capital value system and would particularly welcome analysis from a wide range of interest groups.”

The Minister said this will be a wider review than was completed by direct rule Ministers. It will consider other alternative forms of taxation such as a local income tax. Echoing comments he made during the Assembly debate, he confirmed that if an alternative system emerges that requires the consent of the UK Parliament, then he and the Executive would pursue it with the Government in London:

“We should be under no illusions, however, about the difficulties that will lie ahead if we wish to completely transform the system. Replacing what we have with something radically different will inevitably lead to a different set of winners and losers. Even providing new reliefs pushes the burden onto others, so we must adopt a balanced approach to this whole policy area.

“There was much talk in the debate about the need for an ‘ability to pay’ local taxation system and no one would disagree with this. Reaching consensus on exactly what this means and finding a system that delivers on it, which is also broadly acceptable, stable and easy to administer as a local tax, is a tall order – something recognised by the recently completed Lyons Inquiry report into local government function and finance in England - but it is an order that I will accept with determination and a real sense of urgency."

Mr Robinson appealed for the widest possible feedback to the review:

“I will need help in this task, not merely support from Ministerial colleagues and the Assembly, but from ratepayers and interest groups. This is why I am keen to kick-start this urgent review with a consultation process.”

The Terms of Reference are available here.

Copies can also be obtained by contacting Rating Policy Division.

Written responses should be sent by 31 August 2007 to:

E-mail responses may be sent to: ratingpolicy.cfg@dfpni.gov.uk

Responses may also be faxed to: 028 9185 8008.