Executive agrees Regional Rate for 2026-27
The Executive has agreed the Regional Rate for domestic and non-domestic properties for 2026/27.
The Executive has agreed the same approach as 2025-26 with an increase of 5.0% for domestic properties and an increase of 3.0% for non-domestic properties. The proposal on the domestic regional rate element of the bill of an uplift of 5% would add 63p per week to the average household bill.
Finance Minister John O’Dowd said: “Rates currently raise over £1.6billion annually providing vital funding for our hospitals, childcare, schools, and other essential council services that support our communities. The regional rate agreed today will raise just over £900million for the Executive for the 2026-27 year.
“With many households still feeling the pressure of rising living costs, and businesses facing increased costs, the Executive has aimed to strike a balance between raising the revenue required to support essential public services and protecting workers, families and businesses from unnecessary financial strain.”
The Minister added: “The Executive’s decision to keep the domestic uplift at the same level as last year is a recognition of the cost-of-living pressures felt by households.
“Keeping the non-domestic rate below the current rate of inflation reflects the pressures facing local businesses and their vital role in supporting jobs in our local communities and driving local growth.
“Domestic ratepayers have access to a targeted, means‑tested package of help that serves to provide support for low-income households. 75% of non‑domestic properties benefit from rate relief, offering around a quarter of a billion pounds in much‑needed support.”
The Minister concluded: “These uplifts, to be debated in the Assembly in March, would generate an additional £47million of funding power during 2026/27, compared to Budget 2025-26, for our vital public services that our citizens and businesses rely on.”
A copy of the Minister’s Written Ministerial statement is available at:
www.finance-ni.gov.uk/publications/written-ministerial-statement-regional-rate-2026-27
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For many families, an increase of even 63p a week will be a straw that broke the camel’s back while many are struggling facing increased costs across the board.
And businesses have seen winners and losers with the REVAL 2026 being withdrawn. The hotel sector came out of it much more relieved after significant lobbying by pressure groups while general business people will still be faced with ‘difficult’ rate bills to handle, and for those affected by the floods they have lost their promised 25% rates’ reduction with REVAL being withdrawn.
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IoD Signals Business Fragility
Commenting on ONS data, a spokesperson for the Institude of Directors said this showed UK GDP rising by 0.1% in December 2025, 0.1% in Q4, and 1.3% in 2025, Anna Leach, Chief Economist at the Institute of Directors, said: “GDP disappointed at year-end in 2025, growing by 0.1% in Q4, below the Bank of England’s and others’ expectations for growth of 0.2%. Elsewhere, revisions reveal that the economy was effectively flat between June and December 2025, bringing final growth for the year to 1.3% from the expected 1.4%.
This demonstrates the significant damage that last year’s high levels of policy uncertainty inflicted upon activity.
Weakness in construction output in particular reflects the impact of speculation over housing taxation, rising costs and regulatory disfunction, pushing activity to its lowest level since September 2024. The dominant services sector also stalled, posting no growth in Q4.
“Overall, the latest data paint a fragile picture of economic conditions, with demand and momentum fading as uncertainty intensified towards year-end.
But encouragingly, the January confidence data shows a welcome rebound in sentiment among business leaders — the sharpest increase since immediately after the General Election — alongside improving revenue expectations.
But just as a decent headline rate of GDP in 2025 growth masks underlying weakness, so is the case with this year’s recovery in business confidence.
Businesses continue to feel the strain from an extremely sharp rise in the tax burden, with further cost rises to come this year, but there are welcome signs that decisions are coming off pause and activity is lifting.
And there are some areas of policy focus in government this year which could reinforce growth further.
Business rates reform, trade ties with the EU, industrial strategy and infrastructure investment are all major opportunities to improve the environment for growth and living standards in the UK. A faster pace of implementation could build on recovering momentum in the private sector and drive a brighter growth outlook this year.”
