The Minister made the announcement following a meeting with the Northern Ireland Federation of Housing Associations at Stormont.
Mr Dodds explained that his decision to proceed with these measures was in response to the feedback received from the local community during recent consultation periods. He said: “Consultation responses on these issues have been extremely helpful in determining the way forward. I have listened to, and hope that my decisions reflect, the broad consensus of responses. I know that local people want, and rightly expect, their views to influence final policy decisions.”
The Minister pointed out that the package of measures would help spread the rating burden in a more acceptable way. He said: “This will have the effect of broadening the rating burden through rating empty homes and moderating it by ensuring that no one in Northern Ireland will pay more than the average for the highest council tax band in England.”
The Minister reassured ratepayers and Councils concerned about the impact of the reduced cap: “Ratepayers need not be worried that they will be burdened with picking up the tab for those in higher value properties. The Regional Rate has been fixed at no increase until 2011/2012.
“For Councils, particularly those with a high proportion of higher value homes in this bracket, I will be asking the Assembly to approve legislation that will allow compensating payments to be provided during 2009/10 and 2010/11, subject to the Executive signing off on the Rates (Amendment) Bill, to ensure that the impact on district rates is reduced’’.
“A further benefit of the rating of empty homes is that householders who have chosen not to declare that they have taken up occupation or who have not been detected yet, will be faced with a rate bill anyway. This will help keep bills down for the overwhelming majority of honest ratepayers.”
The Minister highlighted, however, that he was aware of the impact of the downturn in the property market and said: “While I intend to introduce vacant rating in April 2010, I will retain the flexibility to take account of the overriding economic position closer to the time, and will review this decision nearer the time if necessary.”
Finally, the Minister advised that while he wanted to limit the amount people had to pay in rates, he also wanted to ensure people receive the benefits to which they are entitled. He said: “Too many people are missing out on crucial benefits that could make a significant difference to their well being. This is particularly important for the elderly and most vulnerable in our society.
“As part of a wider strategy of improved take up, I intend to introduce increased data sharing powers, allowing information to be better used to target advice towards those likely to qualify for rate relief, lone pensioner allowance and disabled persons’ allowance. As a first step we can improve the targeting of rating reliefs and make the verification system easier. Although automatic delivery of reliefs is not possible at this time, even with these new powers, it remains a longer term aim.”
Notes to Editors:
- Media enquiries only to DFP Communications Office on 028 9052 7374 or 028 9052 7375. Out of office hours please contact the Duty Press Officer via pager number 076 9971 5440 and your call will be returned.
- The Northern Ireland Federation of Housing Associations represents and supports the voluntary housing movement in Northern Ireland. It is an umbrella organisation representing the activities of 33 registered and 7 non-registered Housing Associations in Northern Ireland. Its members manage approximately 30,000 units of accommodation.
- The annual revenue to be raised from the rating of empty homes, given possible exclusions, exemptions, etc is likely to be in the region of £10m.
- Reducing the cap from £500,000 to £400,000 would cost in the region of £2.3m per annum. The transitional relief to councils is likely to cost around £1.5m over two years
- Further details on consultation on the reduced cap, rating of empty homes and data sharing can be found at http://www.ratingreviewni.gov.uk/. A consultation report will be published in November providing an overview of the consultation responses and setting out the Minister’s decisions on a range of rating reforms.
- With the exception of the reduced cap (April 2009) legislation to progress these measures will be taken forward in 2009 and should come into operation in April 2010.
