DEPARTMENT OF FINANCE AND PERSONNEL
23 September 2009
Wilson postpones revaluation and clarifies position on rating of empty homes
In the light of the continuing economic downturn, Finance Minister Sammy Wilson has announced his decision to postpone the non-domestic rating revaluation.
Given recent media coverage he also outlined his current position on the rating of empty homes.
Mr Wilson said: “We are all acutely aware of the difficulties that are being experienced by both commercial and domestic ratepayers during the current economic downturn.
“The commercial property market has suffered badly this year which makes it a difficult time to undertake a general rates revaluation; not simply for the many business ratepayers who are uncertain what their rate bills will be next year but also for local councils who badly need stability within the rate base, particularly as we move into implementation of the Review of Public Administration.”
Non-domestic revaluation, is intended to re-distribute the rating burden more fairly based on up to date rental values. The Minister has decided, however, to postpone billing ratepayers on the new values until April 2011.
The Minister said: “I believe that in normal times a general revaluation is a good thing for business, it reduces the burden for sectors and areas that have not fared so well since it was last done, and increases rate bills for those who are more successful.
“These are not normal times however and taking all the factors into consideration I have therefore decided it is best to postpone the exercise until April 2011, allowing more time for the Commissioner of valuation to review the values and, where appropriate, take into account localised effects of the recession.
“I am confident that we will have a more robust and fairer revaluation as a result which is better for the interests of business and local government who both require certainty looking forward.”
Regarding the rating of empty homes, the Minister clarified his position: “The decline in the housing market was sudden and will take longer to recover than expected. I do not think now is the time, therefore, to introduce the rating of empty homes.”
The rating of empty homes had been announced by Peter Robinson in November 2007. It was intended to implement this policy from April 2010, however this was dependent on the state of the housing market.
The Minister said: “In principle, the rating of empty homes can bring many benefits under the right circumstances, encouraging property onto the market. However, the property market remains in the doldrums and at this time I think it would be unfair to introduce this measure when increasingly the owners of empty properties cannot find buyers or tenants.
“For this reason I believe that the rating of empty homes at 100% should not be introduced in April 2010. I have listened carefully to opinions expressed at the DFP Committee and although I am awaiting final confirmation of its view I would also like to postpone this measure until April 2011. By this time I expect the property market will have stabilised and the conditions for introducing it will be much healthier.”
Notes to editors:
1. Media enquiries only to DFP Communications Office on 028 9052 7374 or 028 9052 7375. Out of office hours please contact the Duty Press Officer via pager number 076 9971 5440 and your call will be returned.
2. Revaluation is part of the normal rating cycle. It takes place periodically to ensure fairness by redistributing the commercial rating burden amongst businesses, undertakings and organisations in line with up to date rental values. The aim is to reflect the social, economic and environmental changes that have taken place since the previous revaluation. It is not an exercise in raising revenue. In Northern Ireland there are approx. 72,000 premises involved, with an estimated revenue of £560 million a year. The last revaluation of the non domestic sector in Northern Ireland was in 2003.
3. The Executive first announced its decision to introduce the rating of empty homes in 2007. Consultation on the detailed policy measure was undertaken between May and August 2008. Further details on the consultation paper and subsequent consultation report can be found at http://www.ratingreviewni.gov.uk/
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