2 March 09 Dodds welcomes Assembly support for lower rates cap

DODDS WELCOMES ASSEMBLY SUPPORT FOR LOWER RATES CAP

The Assembly today approved regulations to reduce the maximum capital value to £400,000 for rating purposes, from this April.

Following the debate Finance Minister, Nigel Dodds, said: “I welcome the Assembly’s decision to approve this measure today. It ensures that no one in Northern Ireland will pay more than the average council tax-payer in the highest band in England and so further moderates the effects of the rating system introduced under direct rule.

“In approving this measure the Assembly appreciates the steps that I have taken to ensure that this does not negatively impact on other ratepayers, such as freezing the regional rate and providing financial assistance to councils to moderate the effect on district rates.”

The Minister continued: “There is a limit to the benefit people derive from the use of regional and local services and to persevere with a local taxation system that can levy a bill equivalent to the absolute highest council tax bill in England is wrong. I am pleased that this measure has been passed in time to reduce relevant bills this year.”

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 proposal to reduce the cap from £500,000 to £400,000, including an integrated impact assessment, was subject to consultation from April – June 2008.

3. Compensating payments will be provided to councils affected by the reduced cap for the 2009/10 and 2010/11 rating years. This will be set at 100% and 50% respectively.

4. Legislation to give effect to this, through the Rates (Amendment) Bill, will be introduced shortly.

5. Further information on the consultation paper and subsequent consultation report can be found at http://www.ratingreviewni.gov.uk/.