Wilson confirms freeze in domestic regional rates for 2010/2011

Finance Minister, Sammy Wilson, has confirmed that the domestic regional rate will remain frozen for 2010/2011.

The Minister was speaking today following approval of the Rates (Regional Rates) Order (Northern Ireland) 2010 in the Assembly.

The Minister said: "In the next rating year, domestic regional rates will again be frozen in cash terms, providing a real saving to all households across Northern Ireland. There will also be a 2.7% increase in the non-domestic regional rate, providing a freeze in real terms given the current level of inflation."

The decision to hold the non-domestic rate increase to 2.7% meets the Executive commitment to not have an increase in commercial rates, in real terms, over the 2008/2009 to 2010/2011 rating years.

The Minister went on to highlight that these decisions have combined to help local ratepayers through challenging economic times. Mr Wilson said: "To raise more from ratepayers, both domestic and commercial, would place an unacceptable burden on ordinary people during this extraordinary economic downturn. These real and cash freezes come on top of other easements provided since devolution was restored.

"The easements include a further lowering of the maximum household rates and the introduction of a lone pensioner allowance. In the commercial sector we have also capped industrial derating at 30% and are introducing a small business rate relief scheme in April which will provide assistance of around £9million per year."

The Minister highlighted the importance he attached to supporting local businesses at this time and said: "The economy must remain our number one priority and the decisions on rates will help businesses to keep their costs down and plan their way out of the recession.

"Taken together, the range of measures proves that the Executive is providing help where it is most needed. More importantly, it shows that devolution is providing real and meaningful help to a range of businesses and households."

From 1 April 2010, the regional rate, expressed in terms of pence per pound will, for domestic properties, be 0.3608 pence (the same amount as in 2009/2010) and for non-domestic property, the rate will be 30.69 pence (in 2009/2010 it was 29.89 pence).

Notes to editors:

1. The Rates (Regional Rates) Order (Northern Ireland) 2010 fixes the figures for the regional rate, it 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 and Personnel as a contribution towards services provided by the Executive Departments. The rates are not assigned to financing specific elements of public expenditure. In 2010/11 the domestic regional rate will contribute around 6.2% of public expenditure in Northern Ireland.
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 reflecting the ratable resources and spending policies of individual councils.
4. The regional rate element is just over half of a typical rate bill.
5. 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.