Commenting on the figures, John Wilkinson, Chief Executive of LPS said: "The length of the current recession has put financial strain on a number of local businesses and this has been clearly shown by the growth in rating debt in this sector. Despite an increase in the rates collected by LPS, difficulties for local businesses has led to a growth in the figure of uncollected rates.
"The figure of uncollected debt stood at £157million at 31 March 2010, but over £24million of this has been collected in the last three months. The fact that nearly two thirds of the end of year figure relates to non-domestic customers is a cause of concern. This proportion has grown over the past year."
Mr Wilkinson appealed for businesses to contact LPS if they were in difficulties, to discuss payment options, highlighting that his Agency had a legal responsibility to enforce rate demands.
He continued: "Over the past year, we have issued 42,352 court processes against ratepayers who have defaulted on their payments and have been awarded 16,455 court decrees. Both of these figures are increases on the previous year. The fact is that we do not want to take ratepayers to court, but if they fail to speak to us about payment options, we are left with no choice.
"I am pleased to note that in recent months there has been a growth in the number of both domestic and non-domestic ratepayers contacting us to discuss payment options. In almost all cases, we are able to agree an extended payment arrangement with the ratepayer. Obviously, when we allow ratepayers to pay smaller amounts over a longer period of time, this has an impact on our levels of debt. However, we believe it is more important to support people during this difficult period. We have also seen a growth in the number of ratepayers receiving Housing Benefit and other rate reliefs, as our discussions often bring to light the fact that callers are entitled to reliefs they were not aware of."
The Executive has introduced a number of measures to help small businesses through the recession, for example the Small Business Rate Relief scheme and a freeze in real terms in the regional rate. Significantly, the Small Business Rate Relief scheme came into effect on 1 April of this year and provides targeted support to businesses.
Glyn Roberts Chief Executive of the Northern Ireland Independent Retail Trade Association commented: "It is to be welcomed that the Small Business Rates Relief scheme has helped a significant number of small business owners in these challenging times.
“Given the depth of this Recession it is understandable that an increasing number of small business owners struggle to pay their rates bill. I would urge any business owner who is facing such difficulty to contact the LPS immediately."
Mr Wilkinson concluded: "These are challenging times for both businesses and individuals across Northern Ireland. Nevertheless, with anticipated reductions in public expenditure, the income generated through rate collection will become even more important. In the last three years over £2.7billion has been invested locally as a result of rate collection.
"The fact remains, however, that there are a number of people who have the ability to pay but who refuse to. LPS will pursue these people through the courts to ensure honest ratepayers do not end up picking up the tab for them. Rates help pay for the public services we all enjoy, so we all have a responsibility to play our part."
Anyone having difficulty paying their rate bill should contact LPS immediately on the 101 telephone number. Further information on payment options, or the range of rate reliefs that are available, can be found on the NI Direct website
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Notes to editors:
- Land & Property Services is the Government Agency responsible for mapping, land registration, valuation and rate collection.
- The figure of £157million for uncollected rates is a cumulative figure and comprises all rates due by 31 March 2010 that were not paid (including all unpaid rates from all previous years).
- A proportion of the £157million relates to assessments that were made towards the end of the financial year. In these instances ratepayers may not have had time to settle their account by 31 March.
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