Northern Ireland Revaluation 2020 likely to lead to increase in rates bills in many districts says Colliers
Most households and some businesses in Northern Ireland should see some steep rises in their rates bills from 1 April 2020, following the publications of the District Rate Poundages, according to Business Rates experts at Colliers International, the global property consultants.
In Northern Ireland, District and Regional Rates Poundages are used together with NAV for business premises, and Capital Value for domestic premises, to calculate the actual bills for businesses and domestic premises. Whilst district poundages were announced today, regional poundages are due in approximately one month.
Last month Land and Property Services (LPS) published its draft Revaluation List figures for all 74,000 non-domestic properties in Northern Ireland for the new 2020 Valuation List. Based on April 2018 rental values this showed a 6.8% rise on the 2015 List values (based on April 2013 rental values).
New District Rate Poundages formally announced today may in some cases cause rates bills to increase further.
Indeed, the figures show (see table below) that it will be costly for individuals following the Revaluation. Every district council in Northern Ireland has confirmed it will be increasing its Domestic District Rates Poundages. A minimum increase of 1.74% and a maximum increase of 7.65% on the previous year’s poundage has been announced for the 2020/2021 rating year across the various district councils. This will add to the pain of many ordinary people, facing higher bills in a period of economic uncertainty.
For Non-Domestic rates payers, the picture is more mixed. Three district councils (Ards and North Down & Mid, East Antrim and Causeway Coast and Glens) are increasing their district rate poundages (by 0.87%, 2.9% and 0.01% respectively), two are keeping theirs at the current 2019/2020 level (Lisburn and Castlereagh and Fermanagh and Omagh), whilst the remaining authorities are reducing their poundage.
The largest decrease in Non-Domestic District Rate poundage is in Belfast, which reduced by 5.4%. However, since Belfast has had one of the largest rises in rental levels since the last valuation, these two factors together mean rate payers are unlikely to get a reprieve or lower bills upon publication of the Regional Rate and new Rates bills from 1 April 2020.
DISTRICT RATES 2020/2021
|
District Council |
Non-Domestic District Rate Pence |
% Change on Previous Year’s Poundage |
Domestic District Rate Pence |
% Change on Previous Year’s Poundage |
|
Antrim & Newtownabbey |
24.0426 |
-3.6 |
0.003649 |
+1.98 |
|
Armagh, Banbridge and Craigavon |
25.4413 |
-2.5 |
0.004419 |
+2.48 |
|
Belfast |
25.9166 |
-5.4 |
0.003394 |
+2 |
|
Causeway Coast and Glens |
24.8603 |
+0.01 |
0.003900 |
+7.65 |
|
Derry and Strabane |
30.3794 |
-2.3 |
0.005009 |
+3.38 |
|
Fermanagh and Omagh |
21.8231 |
No change |
0.003668 |
+2.8 |
|
Lisburn and Castlereagh |
22.6611 |
No change |
0.003158 |
+3.98 |
|
Mid and East Antrim |
30.9186 |
+2.9 |
0.004371 |
+1.74 |
|
Mid Ulster |
23.4749 |
+4.6 |
0.003373 |
+3.24 |
|
Newry, Mourne and Down |
23.6209 |
-2.6 |
0.004004 |
+2.85 |
|
Ards and North Down |
23.1730 |
+0.87 |
0.003446 |
+5.64 |
Some areas, such as Ards and North Down Borough Council, have been tough on both individuals and businesses. This council which traditionally delivered one of the lower District rates Poundages in Northern Ireland, has agreed a domestic rate of 0.003446p in the pound – an increase of 5.64% on last year’s domestic district rate poundage. This equates to an increase of approximately £2.19 per month for the average householder.
Furthermore, Ards and North Down Borough Council have announced a non-domestic district rate of 23.1730p in the pound - an increase of 0.87% on last year’s district rate poundage in a borough where businesses are struggling.
Taking Ards and North Down Borough Council as an example, applying the non-domestic district rate to the current Regional Rate of 0.3401, Colliers has calculated that this equates to a poundage of 57.18p in the pound in total. If the regional rate announced next month also increases, this rates bill figure will rise further with effect from 1 April 2020.
The Council which justified its poundage rise said this was due to a national pay award, the planned repayment of recent loans to fund capital investments in the Borough and the need to strengthen the Borough's reserve fund. "This rise will enable us to protect service quality, secure critical capital investments and deliver our economic ambitions for the Borough”.
Another district Council where poundage increases are high is Causeway Coast and Glens Borough Council which has seen a domestic rates increase of 7.65%. This rise has been struck in order to address a £7m funding deficit for the next year.
David Hughes of Colliers International, based in Belfast said,”We were advised that any rates increases would be inflationary –but the above seems to fly in the face of that in many district councils. Rises for domestic ratepayers are significant and on the business side in particular, the total multiplier looks likely to be nearing 60p in the pound for several councils. Businesses that have already been suffering as a result of Brexit uncertainty and increased costs may find this another burden to bear. We will be looking to assist our clients wherever possible as a result of this.”
John Webber, Head of Business Rates at Colliers International added, “Although the business rating system in Northern Ireland is very different to Great Britain's, with five yearly valuations and an even more complicated appeals system, the elephant in the room in both places remains the multiplier. At over 50% in England and Wales, this is an eye-watering 60% plus in some areas of Northern Ireland, and should the regional poundage rate rise further, as expected this could be crippling to businesses. As in the rest of the UK, we need decent business rates reform in Northern Ireland and taxes that encourage rather than punish businesses.”
