23 September 2009 - £10million help with rates for small businesses and households a step closer

Finance Minister, Sammy Wilson today welcomed Assembly support for the Rates (Amendment) Bill, which targets assistance to small businesses and households.

The Minister was speaking following the second stage debate on the Bill which ran to midnight last night.

Mr Wilson said: “This bill represents the final outworking of the Executive’s review of the domestic rating system, as well as taking forward a small business rate relief scheme, which forms a key part of the Executive’s package of measures in response to the continuing economic downturn.

“The small business rate relief scheme will provide help of between £8million and £9million to more than 16,000 of our smaller businesses. I know that this has been eagerly awaited by bodies such as the Federation of Small Business and I am determined to get this in place in time for billing in April next year.”

Policy Chair of the Northern Ireland Federation of Small Businesses (FSB), Wilfred Mitchell, welcomed the Scheme. He said: "As the only part of the United Kingdom not to enjoy the benefits of such a scheme, the FSB believes its introduction is long overdue in Northern Ireland.

"The FSB has long championed the virtues of the scheme and the positive effects it will have on the economy as a whole and we are encouraged by Mr Wilson’s commitment to its introduction by April 2010.

"We believe the introduction of the scheme will send a clear message of the Executive’s recognition of the importance of the local small business sector and the vital role they will play in helping to rejuvenate the economy during the current economic downturn."

The Bill will also enable new energy efficiency and zero/low carbon relief schemes to be introduced, targeting assistance of around £1.5million per year. It also includes new data sharing powers aimed at helping to improve the take up levels of certain rate reliefs. This will be particularly important for pensioners and those on low incomes.

The Minister continued: “There are also powers in the Bill relating to the introduction of a new rates deferment scheme for eligible pensioners who own and occupy their own home.”

In conclusion, the Minister said: “I welcome the Assembly’s support, given that the Bill includes many measures that will be of benefit during the current economic downturn.

“Once approved by the Assembly, the key provisions in the Bill will enable direct assistance to be provided to small businesses and households of around £10million. It assist people with getting the benefits to which they are entitled and provide a further rates payment option for owner occupier pensioners."

Notes to editors:

1. Media enquiries only to DFP Communications Office on 028 9052 7374 or 028 9052 7375. Out of office hours please contact the Duty Press Officer via pager number 076 9971 5440 and your call will be returned.

2. The Rates (Amendment) Bill contains a number of measures that have previously been consulted on. It is envisaged that the Bill should receive Royal Assent in November (subject to Assembly approval). Key measures such as the small business rate relief scheme, deferment, improved data sharing powers and the energy efficiency and new/low carbon reliefs are to be available from next April.

3. The main provisions in the Bill are as follows:

Clause 1: An enabling power to allow a small business rate relief scheme to be introduced in Northern Ireland.
Clause 2: A power to enable the Department to make regulations providing for full rate relief for the first occupiers of new zero and low carbon homes for up to five years and two years respectively.
Clause 3: A power to enable DFP to make regulations providing for a one-off reduction in rates for owner occupiers that install loft and cavity wall insulation.
Clause 4: Additional provisions to enable the level of industrial derating to be set by subordinate legislation post 2011.
Clause 5: Powers to allow DFP to enter into a deferment agreement with an owner occupier pensioner (aged 60 or above), along with their spouse/partner or their surviving partner. It sets out the scope of the regulation making powers and defines partner, enables the scheme to be applied back to the start of the rating year and makes provision relating to the deferred debt being a charge on the property.
Clause 6: Minor amendments to the current power to rate empty homes (which has not yet been exercised). The clause introduces separate provision for the reduction in rates in unoccupied domestic and non-domestic property. No reduction is to be applied in respect of domestic property when unoccupied rating is introduced in this sector.
Clause 7: A power to introduce ant-avoidance measures, through regulations if deemed necessary, following the introduction of the rating of empty homes.
Clause 8: Provisions relating to the next non-domestic revaluation, including three utilities (electricity, docks and railways), moving from prescribed to conventional assessment.
Clause 9: A power to allow DSD to share social security information with DFP and NIHE for certain purposes, including improving the take up of certain reliefs and allowances and their administration.
Clause 10: Creates a new offence relating to the unauthorised disclosure by DFP, or NIHE, of information provided under clause nine.
Clause 11: A power to allow DSD to share information with DFP for the purposes of DFP’s functions relating to the administration of housing benefit.
Clause 12: A power to enable an alteration to be made to the level of allowance provided to landlords, which may be by specified classes of properties, where they agree to pay rates on their properties. This would apply to agreements that are already in force.
Clause 13: An amendment to allow the list of organisations for which rates are standardised to be amended by negative resolution of the Assembly.
Clause 14: Provides for the exclusion of domestic properties from the completion notice process (used to determine when rates liability commences for new unoccupied properties), on the introduction of the rating of empty homes.
Clause 15: A power to allow compensating payments to be made to district councils, for the reduction in the maximum capital value. It is intended to set this at 100% and 50%, of the difference between the product of the rate for the £500,000 cap and the £400,000 cap, in respect of the 2009/10 and 2010/11 rating years.

4. The detail of the Bill, as well as the Explanatory and Financial Memorandum can be found at the Rating review website. A number of the measures contained within the Bill will require new subordinate legislation before being brought into operation.