AQO 1561/22-27 Oral question to the Minister of Finance
To ask the Minister of Finance for an update on the proposed changes to rating policy.
Asked by Andrew McMurray MLA on 6 February 2025
- Answered
- Oral
- Answered in the Chamber
- Tabled
- 6 February 2025
- Answer due by
- 17 February 2025
- Answered
- 17 February 202511 days after tabling
- Department
- Department of Finance
- Priority question
- No
Answer
Answered in the Assembly Chamber on 17 February 2025. Extract from the Official Report (Hansard), including any supplementary questions:
Mr O'Dowd
I will provide an update on the proposed changes to domestic rating policy. On 29 January, my Department launched a 12-week consultation on two domestic rating measures. The consultation builds on work undertaken by my Department last year, and I encourage people to respond. The first proposal is to elevate the maximum capital value used for rates bills from £400,000 to £485,000. The second proposal is to reduce the early payment discount from its current 4% to 2%. The consultation closes off year 1 of a planned 10-year strategic review cycle of rates supports being progressed by my Department. The work for year 2 — 2025-26 — will move on to the non-domestic side of rating. It will start by reviewing the small business rate relief scheme and non-domestic vacant rating exclusions — two key policy areas highlighted by stakeholders since the restoration of the Executive last year.
That work will also build on research being undertaken by Ulster University into the cost of doing business. It is a piece of work that was commissioned, as I have said, by my predecessor and will allow us to approach Treasury and others with an informed, evidence-based argument.
Mr McMurray
I thank the Minister. In light of the current economic climate for small to medium-sized businesses in the hospitality and retail sectors, why is he consulting on small business rate relief in year 2 of the strategic review rather than in year 1, given its urgency for some of our town centres?
Mr O'Dowd
The work programme has been set out in such a way as to be able to respond to the issues. If, however, a decision is made in Whitehall that does not particularly fit into our programme of work, it is sometimes difficult for us to reprioritise our work streams. The Department is also working with limited resources. We do not have an infinite supply of staff and other resources with which to carry out such work. Domestic rating policy is important, and it is important that we continue that work. I assure the Member that we will move as quickly as possible on the small business rate relief scheme and the other scheme.
Mr Speaker
It is time to move on to topical questions.