Debate contribution: Rates (Regional Rates) Order (Northern Ireland) 2026

Debate contribution by Mr John O'Dowd on 10 March 2026.

MLA

Mr John O'Dowd

Party at the time

Sinn Féin

Date

10 March 2026

Type

Debate contribution (made as a minister)

Business

Executive Committee Business

Heading

Rates (Regional Rates) Order (Northern Ireland) 2026

Assembly identifier

Official Report component 5436678

Read the official Assembly record

Text

I beg to move

Go raibh maith agat, a Phríomh-Leas-Cheann Comhairle.

As Members are aware, legislation to set the regional rates for businesses and households is brought forward around this time each year. To facilitate the billing process, the Executive met on 12 February and agreed the regional rates that are before the Assembly in the order. The order legislates for an uplift of 5% for domestic properties and an uplift of 3% for non-domestic properties. Those uplifts continue the approach that was taken by the Executive last year and reflect the levels proposed in the draft multi-year Budget for the 2026-27 rating year. Members will also be aware that, on 29 January, I outlined my decision to stop Reval2026, meaning that rates bills that are issued in April will be based on the rateable values in the current valuation list, which are set at 2023 values. My immediate focus is on advancing the legislation required to facilitate the annual billing exercise for rating systems and the related issues around seeking Executive agreement of the draft multi-year Budget, following the consultation closing last week. It is my intention, following that, to concentrate efforts on the next steps to be taken in respect of the Reval2026 process. As well as this order, which sets the new regional rates poundage for 2026-27, the Assembly will today debate measures relating to the extension of business support measures. There will be a debate on the further extension of the Back in Business scheme and the rural ATM scheme. This morning, my Department laid the legislation that will extend the small business rate relief scheme, in its current form, into the 2026-27 year. All those measures will accompany rates bills issued from 1 April 2026. The small business rate relief scheme will continue to provide vital support to almost 30,000 businesses. Small businesses are the backbone of our economy. I want to seek extra help for those businesses, which provide vital employment and support workers, families and communities. That is why I progressed the consultation on further enhancements to the small business rate relief scheme. I have set aside around £10 million for those scheme enhancements in my draft Budget proposals. Having assessed the feedback from the consultations, I feel that the enhancements to the small business rate relief scheme is funding well invested in our business sector. Pending the completion of the Budget process, I will make the case to my ministerial colleagues for the further broadening of small business rate relief support and an increase in the number of recipients of small business rate relief for 2026-27. That support will be applied retrospectively from 1 April 2026, if it is agreed at Executive level. I will turn to the impact of today's order. The revenue raised from the regional rates will provide around 5% of the Executive's 2026-27 Budget. Taken together, the amount from domestic and non-domestic regional rates that goes to the Executive is forecast to raise around £900 million in revenue for the forthcoming financial year, of which £47 million is derived from the annual uplifts that will be applied by today's order. That funding is vital for our public services, including healthcare and education. Breaking down the rates bills, regional rates represent around half of a typical bill, with the other half being made up by the district rate. The Executive have no decision-making power over the rates poundage, which is set by councils. District councils and the Executive increasingly have to undertake a difficult balancing act between funding services in line with public expectations and affordability. My Executive colleagues and I recognise the pressures on households and businesses. We therefore aim again this year to strike the balance in the fairest way possible to keep rates increases at a minimum while providing the funding that is required for public services across our Departments. The legislation before you today will fix two regional rates in the pound for 2026-27: one for domestic ratepayers and one for non-domestic ratepayers. As I have noted, the Executive agreed an uplift of 5% for domestic ratepayers and 3% for non-domestic ratepayers. While we are acutely aware of the huge pressure on our public services, in setting the regional rate, we have aimed to balance that with the pressures facing households and businesses. That is why our means-tested support and other domestic support measures are among the most generous across these islands. We will continue to provide that support to domestic ratepayers for 2026-27. On the other part of the tax base, over a quarter of a billion pounds in support continues to be provided to 75% of non-domestic ratepayers in the system. I am committed to continuing to develop the rating system to ensure that it is fair, equitable and progressive and that it is aligned with the Executive's economic vision. The strategic review process continues to be taken forward at pace, with four supporting measures having been assessed. In November, I announced that the process would be expedited further, with completion of reviews for all support measures by the end of the 2027-28 rating year. I will soon announce the next tranche of measures to be reviewed in 2026-27. I will move into more technical matters that are covered by the order. The main purpose of the order is to give effect to the Executive's decision on the regional rates for 2026-27. Article 1 sets out the title of the order and gives the operational date as the day after it is affirmed by the Assembly. Article 2 provides that the order will apply for the 2026-27 rating year through to 31 March 2027. Article 3 specifies 30·79p in the pound as the non-domestic regional poundage and 0·5559p in the pound as the domestic regional rate poundage. I look forward to hearing Members' comments about the order.

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

Assessment

Not flagged

Jev’s structured answers

Assessed 21 October 2026 at 15:12 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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