20 Sep 2007 - Robinson hints at room for manoeuvre on domestic rates

Addressing an audience of rating and valuation specialists in Belfast today, the Rt Hon Peter Robinson MP, MLA said that the recent consultation process on the Domestic Rating System, which concluded last month, had been successful and was already influencing his thinking about the scope for change.

The Minister told delegates to the conference, organised by the Institute of Revenues Rating & Valuation in the City Hall, that local taxation is a key subject for the new Executive:

"Issues around local taxation, water charges and revenues are among the most important facing the Executive. Indeed, I have previously described our ability to improve the domestic rating arrangements as a litmus test for devolution. This was one of the issues that faced the local parties in the run up to the election and now that we are in government we have got to address it directly.

"My Department received responses from a wide range of ratepayers and organisations. A total of 42 organisations responded representing a wide spectrum of society, including two political parties, 11 Councils, Age Concern, the Consumer Council, the Fair Rates Campaign, the Student Movement, NILGA, NIPSA and the UFU. In addition, 77 ratepayers, many of whom were pensioners, took the trouble to respond to the Review. I am very grateful to all who responded."

Mr Robinson said that the issues which attracted the most responses were a single person discount, the merits or otherwise of the new capital value system itself, the ability to pay, the student relief scheme, a local income tax, the disabled persons allowance and the maximum cap.

Other matters raised included the rating of vacant property, a pensioner discount scheme, a deferred rates payment scheme and the difficult issue of paying for water.

He explained that he had read many of the responses and was already considering ways in which the system could be changed for the better:

"I am presently looking at the effectiveness of the new relief packages which were introduced in April and I will be considering if there are better ways to deliver relief and mechanisms for targeting those with the most difficulty in paying.

"Raising the savings limit for eligibility is one option I am attracted to. Also, I would like to be able to see if we can provide more support to our oldest citizens, particularly those who live alone.

"I am looking at ways of encouraging the most vulnerable, particularly the elderly, to take up the reliefs that they are entitled to and I will be announcing some ways in which the situation might be improved.

"I am also reconsidering the level of the cap. Currently it is fixed at around the maximum Council Tax Bill in England, which equates to a capital value of £500,000. I am not convinced this is the right level and I think there is merit in the argument that as rates pay for services, so there must be recognition that there is a limit to the benefit a ratepayer can derive from those services, which suggests to me that it might be applied at a lower level. Though, as I have indicated, it would be necessary to get the support of Executive colleagues to make this change.

"Let's not forget that the Regional Rate has increased by more than 37% over the last three years under the Direct Rule administration. Given this past trend of excessive, erratic and unpredictable Rate increases I believe there may be a case for setting out during this budget cycle what we propose the level of the Regional Rate should be for each of the three years of the Spending Review.

"One of my priorities as DFP Minister will be to control the level of the Regional Rate in Northern Ireland. When I present the draft Budget at the end of October I intend to fulfil this commitment."

The Minister told delegates that his Department will be publishing a consultation report shortly which will summarise the views received, issue by issue. In addition the responses will be published in full on the Department's web site. This report will be sent to the DFP Committee to scrutinise and take further evidence.

He was clear that ratepayers paying higher charges have a right to expect quality public services:

"One overriding issue that is to the fore in my mind is the question of value for money. As people have been asked to pay more in rates in recent years, then they should expect to see better and more modern public services in return. All money raised is additional to Northern Ireland and used for investment in public services. I want to ensure our citizens get a good return on that investment."

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