Robinson confirms domestic rates freeze in 2008-2009 poundages announcement

The Finance Minister, Rt Hon Peter Robinson MP MLA has announced details of the domestic and non-domestic regional rate poundages for 2008/2009.

Speaking following the approval of the Rates (Regional Rates) Order (Northern Ireland) 2008 in the Assembly today, he confirmed that domestic rates will remain at their current level for a three-year period: “The Direct Rule era of large Regional Rate increases are over. This year’s regional rate increase for domestic property has been frozen and this will be maintained for the next three years.

“I would hope that this good news will enable householders to budget with more certainty for the immediate future. As a result of the decisions the Executive has taken with regard to the Regional Rate and Water Charges the average household will be almost £1,000 better off over the next three years.

“I am also pegging the increase in the non-domestic regional rate to the rate of inflation, which currently stands at 2.7% and will ensure no increase in real terms for the two subsequent years.

“This legislation is giving effect to decisions made as part of the first budget of this Executive. It signals our intention to bear down on costs and deliver value for money for all ratepayers in Northern Ireland,” he added.

From April 2008, the regional rate, expressed in terms of pence per pound will, for domestic properties, be 0.3608 pence (in 2007/2008 it was the same level). The non-domestic rate will be 29.89 pence (in 2007/2008 it was 29.10 pence).

Notes to Editors:

1. The Regional Rates Order that fixes the figures for the regional rate is of a routine nature and simply implements the rate increases announced in the Budget.
2. Public expenditure in Northern Ireland is funded by a block grant from Westminster and the regional rates. The regional rates are struck by the Department of Finance & Personnel as a contribution towards services provided by the Departments. The rates are not assigned to financing specific elements of public expenditure. In 2008-09 the domestic Regional Rate will contribute 2.8% of public expenditure in Northern Ireland and the non domestic Regional Rate will contribute 3.1 %.
3. The ratepayer in Northern Ireland has a combined rate bill consisting of regional and district rates. District rates are fixed by each district council to meet its net expenditure on such functions as leisure facilities, economic development and environmental matters. District rates vary from district council to district council depending on the rateable value totals in each area and the spending policies of individual councils. The District Rate represents between 40% and 50% of a typical rate bill.
4. The regional and district rates are both collected by the Land & Property Services agency and the product of the district rates is paid over to each council.
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