High value homes could see rates rise by £943

Caoimhe Archibald said it was "regrettable" that the Executive had not yet discussed her proposals

The owners of Northern Ireland's most valuable houses could see their rates bills rise by up to £943 a year under proposals from the Finance Minister.

Caoimhe Archibald has also laid out plans for a wide ranging review of the rating system.

Rates are a tax paid by households and businesses, based on property values.

Archibald detailed the plans to the Assembly after being unable to get agreement among Executive ministers.

Last week she said it was "regrettable" that the executive had not yet discussed proposals which she finalised in October.

She told MLA's she had asked for her paper to be considered at four meetings of the Executive and had cross-party support to table it from her own party, Sinn Féin, as well as Alliance and the Ulster Unionists.

The proposals would impact homes worth more than £400,000

Affluent areas

One of Archibald's proposals is to increase the cap on the rateable value of houses.

Currently, no houses are assumed to be worth more than £400,000 at a 2005 valuation.

That means that large homes in affluent areas like North Down currently pay the same rates as much more modest detached houses.

Archibald's proposal is to raise the cap to £485,000 which would impact the 8,000 most valuable houses.

That would mean bills increasing by up to between £740 and £943 per year, depending on the council area in which they are located.

It would generate an additional £2m a year in recurring revenue for the Executive.

The minister described the proposal as "proportionate and measured", adding that means-tested and other forms of support are in place for those on low incomes, regardless of a property's capital value.

The other near term changes she is proposing is to cut the early repayment discount to 2% from 4%.

That discount is available to people who pay their rates in full at the start of the year.

Public consultations on the valuation cap and the repayment discount will start in January.

The minister's longer term aim is to review all the different rates supports and discounts which are available to households and businesses.

She said that process is about ensuring those supports are properly targeted and meet their objectives.

"To be clear, review does not mean removal," she added.

"The process I have announced is about ensuring the support we have in place is achieving the desired policy outcome."

'Blight of vacant properties'

That review will happen over the next decade with the initial focus on small business rate relief and the rating treatment of vacant commercial property.

The minister said rating policy could be used to "help tackle the blight of vacant properties in our towns and cities".

Currently some vacant commercial properties get a 50% rates discount.

There have been calls for that discount to be reduced to force landlords to either use the property or sell it to someone who can.

The minister said: "My aim is to work in a concerted and co-ordinated way to get property stock back into use or properly redeveloped or repurposed."