Finance Minister Dr Caoimhe Archibald has launched a public consultation on proposed changes to Northern Ireland's rating system. Among the proposals being considered are to reduce the Early Payment Discount and elevate the Maximum Capital Value on domestic properties.
The 12 week consultation will run from 29 January 2025 to 25 April 2025 and is seeking views on reducing the Early Payment Discount from 4 per cent to 2 per cent for those who pay their rates bill in a single amount by the specified date. The minister is also consulting on elevating the level of the Maximum Capital Value on domestic properties from £400,000 to £485,000.
In the last full rating year 2023/24 over 163,000 ratepayers availed of the discount. The proposed reduction in the discount from 4 per cent to 2 per cent would generate a further £4 million in annually recurring savings for the Executive.
When it comes to the Maximum Capital Value, there are over 8,000 properties in total above the current cap threshold of £400,000. The proposal to elevate the maximum capital value to £485,000 would see these properties’ bills increase between £14.23 and £18.15 per week depending on the council area in which they are located and would generate around £5 million in annually recurring savings for the Executive and local councils.
Launching the consultation, Dr Archibald said: “The consultation I am launching today is part of my strategic roadmap to build a progressive rates system based on the principles of fairness and equity. My aim is to ensure that rate support within the system is targeted towards those who need it most and that any rate reliefs continue to meet their policy objectives.
“The proposed reduction in the Early Payment Discount takes account of the shift in customers preferences as more customers now pay their bills by Direct Debit meaning it is the most efficient way for my department to collect rates.
“The proposals to alter the current Maximum Capital Value, often referred to as the “rates cap”, would generate additional revenue at the top end of the taxbase, a more progressive step than increasing the poundage element for the whole taxbase to realise the same amount of revenue."
The minister added that it is important to highlight that the change to the rates cap would only apply to 1 per cent of all domestic properties here and that means-tested and other forms of support are in place for those on low incomes, regardless of a property’s capital value.
"This and other measures within the rating system such as Lone Pensioner Allowance would be adjusted in proportion to any change in liability," she said.
“I view these proposals as the start of the process I announced last month to allow the rating system overall to becoming more targeted and focused. This will allow the Executive to ensure that support is fit for purpose or whether that resource should be redirected elsewhere.
“I would encourage everyone to have their say by contributing to the consultation and helping to ensure we have a fairer and equitable rating system which provides support for those who need it.”
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