Debate contribution: Unpaid Rates

Debate contribution by Mr Eóin Tennyson on 21 October 2025.

MLA

Mr Eóin Tennyson

Party at the time

Alliance Party

Date

21 October 2025

Type

Debate contribution

Business

Private Members' Business

Heading

Unpaid Rates

Assembly identifier

Official Report component 5197681

Read the official Assembly record

Text

Domestic and non-domestic rates revenue is a crucial source of income and the most significant of all the levers that are available to the Executive to raise funding for front-line public services. It has generated around £1·6 billion in the past financial year alone. The increase in unpaid rates in recent years is, undoubtedly, the result of a challenging economic environment, with the higher cost of living and doing business weighing heavily on many ratepayers. It is, however, a welcome fact, which must be acknowledged that, as of the end of August, the volume of unpaid rates carried forward in that year had fallen, with £59 million moving through legal recovery panels, almost £74 million being examined for potential legal action in the current rating year, and almost £13 million being the subject of active payment plans. LPS must be robust and rigorous in pursuing those who refuse to pay, including through the courts where necessary. That is particularly pertinent in the context of the increased financial pressures facing our public services. It is also essential that LPS continues to offer affordable longer-term repayment arrangements in cases where households and businesses are genuinely struggling to pay. Otherwise, we could see some of those businesses go to the wall, which would cost more to the public purse in the long run. We have to make a distinction between those who cannot pay and those who will not pay, with a fair and proportionate response being taken as a result. Whilst some unpaid rates relate to avoidance, others are legitimately the result of businesses going to the wall. The proposer of the motion mentioned the £82 million that has been written off over the past six years. I am curious whether the Minister can set out any more detail on the composition of that £82 million. I suspect that a significant portion of it has resulted from businesses that have gone bankrupt, where there is nothing to legally recover. The level of unpaid rates is, undoubtedly, a serious issue that needs to be tackled, but it is not the core source of our financial challenges as an Executive. That is why Alliance has continued to call for a short, sharp, independent and holistic review of rating relief in order to ensure that the system is progressive, fair, fit for purpose and able to support the needs of our public services alongside economic growth. The 10-year strategic review of rating policy that was announced by the previous Finance Minister clearly falls short of that aim. The lack of independence will impact on confidence in its recommendations, the piecemeal approach will impact on its ability to recommend meaningful change, and the long timeline invariably means that the socio-economic environment will have changed dramatically by the time the review is complete. It is clear, based on the number of businesses that are struggling, that there is a need for additional support in key sectors, such as hospitality, retail, leisure and, in particular, childcare. It is a missed opportunity that even the most modest reforms to our rating system to make it fairer and raise additional revenue for public services have not been achieved since the Assembly was restored. As a progressive politician, I believe that those with the broadest shoulders ought to bear the greatest burden. We have to take steps that protect the most vulnerable whilst raising the investment that our public services need. It is not good enough for parties to simply come to the Chamber and bemoan the lack of investment from Westminster whilst refusing to take any responsibility or take action with the powers that we have. I acknowledge that, in fairness to the Minister, consultations have been undertaken and proposals have been brought to the Executive that were not supported. It is not necessarily for a complete want of trying by the Department on this occasion. What hope is there for any serious transformation of our finances or, indeed, any greater fiscal devolution if we cannot achieve political consensus about even the most basic change to our rating system? Alliance will support the motion, because we absolutely support the need to tackle unpaid rates in Northern Ireland, but that has to happen in the context of much-needed and long overdue reform to our rating system.

715 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

Jev’s structured answers

Assessed 21 October 2026 at 13:33 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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