Archibald Sets Out Roadmap For Rates

Updating MLAs in the Assembly the Minister outlined her plans which include:

• Undertaking a comprehensive Strategic Review Cycle of all rates support provided within the system, initially prioritising the policies of Small Business Rate Relief Scheme and Non-Domestic Vacant Rating exclusions.
• Commissioning research on the cost of doing business.
• Launching a consultation in January 2025 on proposals to reduce the Early Payment Discount from 4% to 2% and elevating the level of the Maximum Capital Value on domestic properties from £400,000 to £485,000.
• Commencing preparatory work on a new domestic revaluation which would see over 800,000 domestic properties assessed and revalued.

Speaking in the Assembly, Dr Archibald said: “Today kick starts a vital process of work required to build a progressive rates system based on the principles of fairness and equity, which aligns and underpins Executive priorities, stimulates our economy and supports the growth of our taxbase by creating the conditions for businesses to thrive.

“The rating system is the Executive’s main lever to generate revenue and is critical for the funding of our public services, raising in the region of £1.5 billion annually. Rate relief provides important support to thousands of businesses and households. We must therefore ensure supports are targeted towards those who need it most or those who are vulnerable, and that any rate reliefs are meeting their policy objectives. The more revenue spent on rate support, the less there is for vital public services.

“I am therefore committing to reviewing every single rating support measure within a Strategic Review Cycle. To be clear review does not mean removal. The process I have announced is about ensuring the support we have in place is achieving the desired policy outcome and using the resources we have to best meet the needs of our citizens and businesses.”

Outlining her determination to supporting businesses, Minister Archibald added: “I have engaged with the business community and have listened to the challenges posed by the cost of doing business, post-Covid and in light of the added impact of the Chancellor’s Autumn Budget.

“That is why I have prioritised the policy areas of the Small Business Rate Relief Scheme, including assessing its ability for enhanced sectoral targeting, and Non-Domestic Vacant Rating exclusions given the concerns over vacant properties in our towns and cities. Preparatory work will commence in the New Year to allow those reviews to progress as quickly as possible in 2025/26.

“I am also commissioning research on the cost of doing business here. This will help us better understand the issues facing businesses.”

Concluding the Minister said: “The plans I have set out lay the foundations to create a rates system that is sustainable and fairer.

“I am determined to deliver on this process to ensure the rates system is delivered efficiently and effectively, grows our taxbase and provides appropriate support for those who need it. Today is an important step in that journey.”