Rates proposal could mean some pay more

Rates are property taxes paid by households and businesses

Stormont's finance minister has confirmed she is planning changes to rates which could see some households and businesses paying more.

Caomihe Archibald said she wants to build a progressive rates system which grows the tax base.

She intends to bring forward short, medium and long-term proposals in the coming weeks.

Rates are property taxes paid by households and businesses.

There are a range of reliefs which give discounts in certain circumstances.

When devolution was suspended, the then Northern Ireland secretary began a consultation on removing some of those reliefs.

That process was taken over by the finance minister, and she has now published a summary of consultation responses.

Her intention to build a progressive rates system is normally another way of saying that better off households should be paying more.

The household rates valuation cap was among the reliefs which were consulted on.

Rates are based on property values and the rateable value of houses is currently capped, meaning no houses are assumed to be worth more than £400,000 at a 2005 valuation.

That means that large homes in more affluent areas of north Down, for example, currently pay the same rates as much more modest detached houses.

About 8,000 households benefit from the rates cap.

The Secretary of State’s consultation only looked at entirely abolishing reliefs but the minister intends to take a more nuanced approach.

"The consultation directed by the then Secretary of State was limited in nature, looking simply at whether support should be removed or retained," she said.

"Having met with ratepayers and business organisations over recent months I understand these complex issues require careful handling.”