Fears that there may be a rates’ crisis in the new super councils have been allayed as Finance Minister Simon Hamilton MLA today announced the introduction of a £30million support scheme to help keep rate bills down when the new councils are formed in April. The new councils have had to carry the costs of the Review of Public Administration mergers and there have been fears that the local domestic and business rates could go sky high.
The scheme delivers £30million of direct support to both domestic and non-domestic ratepayers who would otherwise have faced sudden and excessive increases in their rate bills because of the differences that currently exist between the rates set by the existing councils.
Announcing the new scheme the Minister said: “The scheme will alleviate sudden and significant increases in district rates arising out of the creation of the eleven new councils, next year.
“This rate support will be phased over the four year term of the council, with an 80% reduction on the increased portion of your bill next year, followed by a subsidy of 60%, 40%, and 20% in the remaining years of the scheme.”
There are over 500,000 ratepayers in Northern Ireland and this scheme will benefit upwards of 200,000 of them, domestic and non-domestic, who are located in areas where district rates are relatively low. Discounts will be automatically applied to the district rate shown on the rate bill from next year for the life of the scheme and therefore there is no need for anyone to claim it.
The Minister added: “This scheme model received broad support in the consultation exercise and I am pleased that we have been able to utilise the funding available to reflect that preference, particularly given the unprecedented pressure on public finances over the next few years. My Department will be monitoring the costs of the scheme carefully for the mid-term review planned in advance of the 2017/18 rating year, to establish if any adjustment to the scheme will be required at that point. Councils, however, must also play their part to manage their affairs and act responsibly when striking their district rates.”
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