Northern Ireland rates to rise as Stormont Executive agrees 4% regional increase

Executive ministers have agreed to increase the regional element of rates bills in Northern Ireland in line with inflation.

Finance Minister Caoimhe Archibald had proposed a 4% rise at the meeting of the devolved administration at Stormont Castle on Thursday.

The Executive’s move, which is subject to the approval of the Assembly, comes amid a demand from the UK Government for the devolved administration to raise an additional £113 million of its own revenues in the coming financial year.

A 4% increase in the regional rate would equate to around £30 million extra in revenue.

Ms Archibald was accompanied by First Minister Michelle O’Neill and deputy First Minister Emma Little-Pengelly as they announced the decision to reporters outside Stormont Castle after the meeting.

First Minister Michelle O’Neill said rates bills would go out to householders as scheduled in April.

“We’re very mindful of the pressures that all households are feeling right now and particularly businesses as well and we have therefore decided to keep the regional rates in line with inflation,” she said.

Ms O’Neill added: “The Executive has always been very clear that we’re up for the challenge of transforming our public services but we only can achieve that if the long term financial package is in place and the right long term financial package is in place.

“So the Finance Minister has continued to have very constructive conversations with the Treasury and we intend to continue that engagement.”

Deputy First Minister Emma Little-Pengelly said engagement with the Treasury to secure more financial support for the Stormont Executive has been “positive” so far.

“We know that there are a huge number of families in Northern Ireland that are under significant financial pressure,” she said.

“That is why we have been working so hard, including with the Treasury and the UK government, to make representations on this. And that’s why we do believe that today’s decision will keep costs to families at an absolute minimum. It means that on a domestic property with an average capital value of £123,000 they would pay just under £2 more a month. We understand absolutely that families are under pressure, families are concerned, there’s also local government rates increases and this will mean that there is a very small and minimal increase in terms of what they have to pay.

“For businesses with a rateable value of £50,000 it will mean an additional £10.73 per week. I want to reassure households and businesses that the existing £350 million of rates support that is in place will still be there to help them in the year ahead.

“And I think it’s important to say that negotiations continue. The step that we have taken today is because those engagements with Treasury and the UK government have been positive. We’re hopeful in terms of the days and weeks ahead to get further clarity in relation to some of those aspects.

“So this is very much a decision taken in the context of those negotiations that have taken place and the nature and the positive nature of those negotiations thus far.”

Stormont Finance Minister Caoimhe Archibald described her talks with the Treasury on Wednesday as “constructive”.

“We all want the best public services and when you listen to ministers around the Executive table, the current projections indicate an extremely difficult financial position,” she said.

“I had a constructive first meeting with the Treasury yesterday and look forward to continued engagement in the time ahead on a number of matters, including a new fiscal framework.”

The minister added: “The Executive’s recommendation to the Assembly should be seen as a clear demonstration that we recognise the role we have to play to ensure our finances are on a more sustainable footing.

“And working together as an executive we will be better placed to meet the challenges of delivering high quality public services.”

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