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RATES (AMENDMENT) BILL

EXPLANATORY AND FINANCIAL MEMORANDUM

INTRODUCTION

1. This Explanatory and Financial Memorandum has been prepared by the Department of Finance and Personnel in order to assist the reader of the Bill and to help inform debate on it. It does not form part of the Bill and has not been endorsed by the Assembly.

2. The Memorandum needs to be read in conjunction with the Bill. It is not, and is not meant to be, a comprehensive description of the Bill. So where a clause or part of a clause or schedule does not seem to require an explanation or comment, none is given.

BACKGROUND AND POLICY OBJECTIVES

3. The Bill is intended to give effect to a number of decisions arising from the Executive’s Review of the domestic rating system as well as three issues relating to the non domestic rating system.

4. In terms of the domestic rating system the Executive undertook a Review, following the restoration of devolution, aimed at making the system more acceptable to ratepayers. While two outcomes were introduced in April 2008, a lone pensioner allowance and an increase in the savings limit for pensioners under the low income rate relief scheme, a number of measures are still to be implemented. These will be given effect through the Bill.

5. In terms of the domestic rating reforms it has been decided to introduce the rating of empty homes, establish a rates deferment scheme for home owning pensioners and improve data sharing powers following the Executive’s Review. It has also been decided to introduce two new schemes aimed at encouraging householders to act in a more environmentally responsible way. This was a key theme to emerge from consultation during the Review. The Bill enables the Department of Finance and Personnel to make regulations providing for a one-off reduction in rates for owner occupiers who install loft or cavity wall insulation in their homes. The amount of the reduction will be prescribed in the regulations and the scheme itself will be time limited to 31 March 2015. This date can however be changed by subordinate legislation to allow for a second phase should it be decided, following a review of the insulation based scheme, that it should be broadened to include other measures such as solar panels, etc. The Department will also be able to extend the scheme to other sectors, including the social rented sector, through subordinate legislation should this be considered necessary in the future. The overall aim of the scheme will be to encourage investment in, and thereby improve, the housing stock in Northern Ireland which aligns with the Executive’s wider commitment to promote sustainable development.

6. The Bill also provides the Department of Finance and Personnel with a power to make regulations to introduce a scheme giving full rate relief to the first occupiers of new zero-carbon and new low-carbon homes for up to five years and two years respectively. This enabling power limits the life of the scheme to 31 March 2016 in respect of new zero-carbon homes and 31 March 2013 in respect of new low-carbon homes to align with existing UK government targets. These dates can however be changed through subordinate legislation should this be required. The overall aim of this scheme will be to encourage the demand for zero-carbon and low-carbon homes and thereby stimulate developers in Northern Ireland to build them.

7. As part of its Review the Executive also agreed that the rating of empty homes should be introduced, in order to encourage people to make use of empty property and improve the availability of housing. The Bill makes provision that will enable this to be introduced and to allow empty homes (including garages and storage premises) to be rated at 100%. There will be no initial exemption period (with the exception of new property developments which will be subject to an initial 12 month exemption). Given current economic conditions, the precise timing of the introduction of the rating of empty homes will be kept under review.

8. The Executive has also decided to reduce the maximum capital value that applies for domestic rating purposes to £400,000. This is intended to ensure that the maximum rate bill in Northern Ireland is no higher than the average bill within the highest council tax band in England, around £2,800. This has been given effect through subordinate legislation, using existing powers in the principal Order, that is the Rates (Northern Ireland) Order 1977 (S.I. 1977/2157 (N.I. 28)). The change became operational on 1 April 2009. The Bill makes provision for compensating payments to be made to district councils affected by the reduction in the maximum capital value to £400,000, in respect of the 2009/10 and 2010/11 rating years. It is intended to provide assistance at 100% and 50% respectively of the difference between the product of the rate for the £500,000 and £400,000 capital value thresholds.

9. As part of the wider package of measures aimed at providing assistance to pensioners the Executive also agreed that a rates deferment scheme should be introduced for owner occupiers of pensionable age. The power to introduce such a scheme is already provided for in the Rates (Northern Ireland) Order 1977, with the Bill substituting this and slightly extending the scope of the scheme. Eligibility will be subject to the person being an owner occupier aged 60 or over (to subsequently increase in line with changes to pensionable age through to 2046). The Department of Finance and Personnel will have the power to enter into a deferment agreement with an owner occupier of pensionable age as well as the partner of such a person where he/she also owns and occupies the property. Further eligibility conditions will include minimum equity levels in the property with account also taken of personal circumstances. Interest will be charged on the amount outstanding under a deferment agreement and applicants will be responsible for the initial set up costs associated with entering into such an agreement.

10. In relation to data sharing, new powers are being taken in this Bill to allow the relevant Government agencies to better target likely recipients of, and verify claims relating to, rate relief, the disabled persons allowance and the lone pensioner allowance, as well as for the purposes of assessing housing benefit claims for owner occupiers. It is recognised that these powers are only part of a package of measures which will collectively help address the issue of low take up of reliefs. This issue emerged from the research and analysis carried out during the Executive Review of domestic rating following which a study was commissioned by the Executive, and carried out by Access to Benefits for Older People, to inform the development of effective take up strategies. These powers will be accompanied by a number of actions at administrative level around data security, audit trail and independent scrutiny all of which featured in the responses received during the consultation on the issue last year. The Bill also creates a new offence relating to the unauthorised disclosure of information pursuant on the new power dealing with certain rate reliefs and allowances.

11. In terms of the non domestic rating system there are three main areas covered. For the next revaluation exercise some changes will be needed in the legislation to facilitate this. In particular the provisions which relate to the former public utilities whose valuation assessments will move from being prescribed in legislation to the conventional method of assessment. The changes needed are largely in the form of repeals.

12. The second main area concerns industrial derating. The rating liability for the manufacturing sector currently stands at 30% and the Assembly approved placing a hold on this level until March 2011. To date this has been given effect through subordinate legislation. If provision is not made in the primary legislation, then as currently drafted it would provide for 100% liability from April 2011. It was agreed that, in order to provide flexibility for the Assembly to set the rating liability by subordinate legislation, post April 2011, the opportunity should be taken now to amend the primary legislation, which the Bill will give effect to.

13. The third main provision which is required for the non domestic sector is an enabling power to allow for a small business rate relief scheme to be introduced (temporary reduction of rates for specified hereditaments) which would also provide enhanced rate relief for sub Post Offices in Northern Ireland. The scheme was announced on 15 December 2008 as part of the Executive’s response to the economic downturn and the December monitoring round.

CONSULTATION

14. Views were sought on the broad domestic rating policy direction as part of 12 weeks consultation undertaken in 2007 on the Executive’s Review of the domestic rating system. Policy documents, setting out detailed proposals, were subsequently published for twelve weeks consultation in 2008 on:

15. In total there were 288 responses to these consultation exercises, representing 63 organisations (including 20 district councils) and 156 individuals. This was supplemented by meetings with a range of key stakeholders. By and large there was support for the proposals set out in the consultation papers. A consultation report, setting out the way forward on the range of policy issues, as well as providing an update on various rating matters, was published on 6 January 2009.

16. On the non domestic side, an explanatory letter was issued to the main ports in relation to the proposed move from prescription to conventional assessment at the next revaluation. It is the ports who would be most affected by the change of assessment. Meetings have been held and further explanation provided. A targeted consultation on the impact assessment for the small business rate relief scheme has been completed and no major issues were raised. A wider consultation around the case for a small business rate relief scheme, from which this proposal emerged, was carried out, on behalf of the Department of Finance and Personnel, by the Economic Research Institute for Northern Ireland as part of their assessment of this issue. Meetings have also been held with the National Federation of Sub-postmasters on how the post office elements of the scheme might work.

17. The consultation documents, the responses received and the associated consultation report, setting out decisions on the way forward, can be accessed at http://www.ratingreviewni.gov.uk

OPTIONS CONSIDERED

18. On the return of devolution the Executive undertook a Review of the domestic rating system, aimed at making it more acceptable and taking account of the concerns that had been expressed by ratepayers. This included options for change that could be brought forward in 2008 and included measures relating to both the tax base and reliefs. This included consideration of:

19. In addition, consideration was also given to longer term measures that could be introduced, that would require primary legislative change. These included consideration of:

20. Following the Executive’s Review it was agreed to introduce a lone pensioner allowance (for those aged 70 or over) and increase the savings threshold for pensioners under the rate relief scheme. It was also agreed to reduce the maximum capital value, introduce the rating of empty homes, introduce a rates deferment scheme for pensioners, improve data sharing powers and introduce green rebates. This was subject to further consultation on the detail of the measures, and impact assessments, being carried out. These took place between April and September 2008.

21. On the non domestic side revaluations are meant to take place periodically. The last one was in 2003 for Northern Ireland (2005 for GB) On moving from prescribed to conventional assessment for former public utilities, GB completed this exercise at their 2005 Revaluation. It is therefore prudent for Northern Ireland to do likewise during the next Northern Ireland revaluation. Failure to do so could attract criticism from the EU in terms of preferential treatment for Northern Ireland businesses.

22. On industrial derating the option of doing nothing would result in the rating liability for manufacturing premises moving from 30% to 100% in April 2011. The provision included in the legislation provides flexibility for the Assembly to decide at which level (including 100%) the liability should be set at in subsequent years.

23. The enabling provision for a small business rate relief scheme is the result of a detailed economic appraisal of the alternatives which emerged following the report from the Economic Research Institute of Northern Ireland into the need for a small business rate relief scheme for Northern Ireland. Among the alternatives considered were a rural rate relief scheme, a scheme to support urban regeneration, and a scheme to boost productivity in the small business sector.

OVERVIEW

24. The Bill has 20 clauses and two Schedules and amends the Rates (Northern Ireland) Order 1977. A commentary on the provisions follows. Comments are not given where the wording is self-explanatory.

COMMENTARY ON CLAUSES

Clause 1: Temporary reduction of rates for specified hereditaments

This clause substitutes Article 31C of the Rates (Northern Ireland) Order 1977, providing for reductions in rates for certain properties to be specified in regulations. The percentage reduction, the years to which it applies and the net annual value (NAV) limits will also be set out in regulations. The provision also allows the Department of Finance and Personnel to make provision by regulations for any other matters which it considers are necessary or expedient for the purposes of the Article. The scheme to be introduced by the regulations will commonly be known as the Small Business Rate Relief Scheme.

Clause 2: Zero-carbon or low-carbon homes

This clause inserts a new Article 30C into the Rates (Northern Ireland) Order 1977. Paragraph (1) enables the Department of Finance and Personnel to make regulations providing full rate relief to the first occupiers of new zero-carbon and low-carbon homes. Provision is made in paragraphs (2) and (3) of the new Article for the relief to apply for up to two years in respect of new low-carbon homes and for up to five years in respect of new low-carbon homes. These paragraphs also provide for the scheme to be time limited to 31 March 2013 in respect of new low-carbon homes and 31 March 2016 in respect of new zero-carbon homes. Paragraph (4) enables the Department of Finance and Personnel to alter these end dates by subordinate legislation subject to affirmative resolution and make any transitional or savings provisions required on the ending of the scheme.

Provision is also made in paragraph (5) enabling certain key terms, including zero-carbon home and low-carbon home, to be defined in regulations. Paragraphs (6) and (7) make further provision in relation to the definition of the terms zero-carbon home and low-carbon home. Paragraph (8) allows the regulations to provide for the method of claiming relief and for the circumstances in which the relief can be withdrawn. Paragraph (9) allows provision to be made regarding the evidence required to show that the definitions of zero-carbon home and low-carbon home have been satisfied. In connection with this, paragraph (10) further enables regulations to refer to an existing statutory scheme or process about building and make provision concerning certification, approval and associated fees.

Paragraph (11) provides for an appeal against a decision made by the Department under the regulations. Paragraph (12) makes provision for certain exclusions. Paragraph (13) allows the relief to be applied in respect of a period before the making of the regulations but not before the beginning of the rating year. Paragraph (14) enables the Department through regulations to make any other provisions deemed necessary for the purposes of this scheme.

Clause 3: Energy efficiency

This clause inserts a new Article 30D into the Rates (Northern Ireland) Order 1977. Paragraph (1) enables the Department of Finance and Personnel to make regulations providing in prescribed cases for the rates payable in respect of a dwelling house to be reduced by an amount to be prescribed in regulations. Paragraph (2) stipulates that the dwelling house must be one to which prescribed measures to improve its energy efficiency have been taken to a prescribed standard and which meets certain prescribed conditions. Paragraph (3) defines certain terms for the purposes of the Article. Paragraph (4) confines the reduction to one year except in prescribed cases and time limits the scheme to 31 March 2015. Paragraph (5) enables the Department of Finance and Personnel to alter this end date by subordinate legislation subject to affirmative resolution and make any transitional or savings provisions required on the ending of the scheme.

Paragraph (6) enables the Department of Finance and Personnel to stipulate in the regulations that a reduction will not be made unless a person has consented to the inspection of the dwelling and to make further provision in relation to such inspections. Paragraph (7) also enables provision to be made in regulations for the method of claiming a reduction and the method of making a reduction under this Article.

Paragraph (8) allows regulations to provide for certain functions to be carried out by persons other than the Department. Appeals against a decision by the Department of Finance and Personnel made under the regulations can also be provided for in regulations by virtue of paragraph (9). Paragraph (10) lists certain exclusions which can also be provided for in regulations.

Paragraph (11) allows the reduction in rates to be applied in respect of a period before the making of the regulations but not before the beginning of the rating year. Paragraph (12) enables the Department of Finance and Personnel through regulations to make any other provisions deemed necessary for the purposes of this scheme.

Clause 4: Exemption for industrial hereditaments

This clause amends the Rates (Amendment) (Northern Ireland) Order 2004. Subsection (2) provides that the provisions relating to the removal of industrial derating may be brought into operation by means of an order which has been approved in draft by a resolution of the Assembly. Subsection (3) removes the date of 1 April 2011 as the date for the removal of the industrial derating provisions. Subsections (5) and (6) amend the Rates (Northern Ireland) Order 1977 to allow the percentage liability for industrial hereditaments to be set from 1 April 2011 by means of an order subject to affirmative resolution of the Assembly.

Clause 5: Agreements for deferred payment of rates on dwellings

This clause substitutes Article 29A of the Rates (Northern Ireland) Order 1977 (agreements for deferred payment of rates on dwellings). Paragraph (1) provides that the Department of Finance and Personnel may enter into an agreement with a person for the payment of rates in respect of a dwelling to be deferred. Paragraph (2) enables regulations to stipulate that the person must be the owner occupier of the property, that the property is a dwelling-house or used partly for the purposes of a private dwelling and that certain conditions must be met. Paragraph (3) enables regulations to stipulate that those entering into a deferment agreement must be of pensionable age, the partner of a person of pensionable age or the surviving partner of a person who has entered into a deferment agreement. Paragraph (4) makes provision that regulations may provide for the terms of the deferment agreement (including repayment, interest and termination), for the debt to be a charge on the property, for the enforcement of this, for an agreement with a surviving partner to transfer the amount outstanding under a deceased partner’s agreement and for the definition of specified terms.

Paragraphs (5) and (6) make provision that regulations may provide for a deferment agreement to apply to payment of rates for the whole of the rating year in which the agreement is entered into. Paragraph (7) enables regulations to modify paragraphs (2) and (3) as well as other provisions in the Rates (Northern Ireland) Order 1977 for the purpose of the deferment scheme. Paragraph (8) enables the Department of Finance and Personnel, through regulations, to make any other provisions deemed necessary for the purposes of the deferment scheme. Paragraphs (9) to (11) deal with who is to be treated as a partner for the purposes of the deferment scheme.

The regulations will have to be laid in draft and approved by the Assembly.

Clause 6: Extension of liability for unoccupied hereditaments to dwelling-houses, etc.

This clause amends Schedule 8A to the Rates (Northern Ireland) Order 1977. Subsection (2) makes provision for the rating of unoccupied properties to be extended to the domestic sector. This includes dwelling-houses, private garages and private storage premises. Subsection (3) introduces separate provision for a reduction in the amount of a rate in respect of unoccupied domestic property and a reduction in the amount of a rate in respect of unoccupied non-domestic property. It is intended that no reduction will apply in respect of unoccupied domestic property. Subsection (4) provides that where a property is used for both non-domestic and domestic purposes, that the domestic part of the property will no longer be exempt from rates when empty.

Clause 7: Capital value of hereditaments: change of state of property to be disregarded

This clause provides an enabling power to alter the valuation assumptions that apply to properties with a capital value (dwelling houses, garages and private storage premises). This would allow the Department of Finance and Personnel to make regulations to deal with steps that owners might take (or omit to take) in an attempt to avoid rates when unoccupied, through causing or allowing the state of their property to change.
The clause provides that regulations may make provision for the circumstances in which, and the length of time for which, a change in the state of the property may be assumed not to have occurred. It also provides the power to include additional matters in regulations, including assumptions in relation to changes in the state of a property in comparison with an earlier time, provisions relating to the person by whom acts may be treated as done and provisions that the regulations apply to omissions as well as acts.

Provision is also made in the Bill that any regulations must be laid in draft and approved by the Assembly.

Clause 8: Repeal of exception from general valuation reference date and other special provisions

Subsection (1) repeals Article 39A(4) of the Rates (Northern Ireland) Order 1977 which provides that an order setting a date by reference to which valuations are made for a new NAV list does not apply to a hereditament which is occupied by a public utility undertaking. Subsection (2) provides that such an order made before subsection (1) comes into operation shall have effect as if subsection (1) had been in force when the order was made.

Subsection (3)(a), (b) and (c) provides that Articles 39C, 39D and 39E which enable orders to prescribe methods for valuing hereditaments occupied by electricity, gas undertakings and water supply or sewerage services respectively for the purposes of a NAV list shall cease to have effect. Such hereditaments will henceforth be valued conventionally.

Subsection (3)(d) provides for the repeal Schedule 3 to the Order which provides for definitions relating to railway hereditaments.

Subsection (3)(e) provides for the repeal of Parts 4 and 10 of Schedule 12 to the Rates (Northern Ireland) Order 1977 which respectively provide for methods for valuing railway and dock hereditaments. Such hereditaments will henceforth be valued conventionally.

Clause 9: Sharing of social security information

This clause enables the Department for Social Development (or a person providing services to that Department) to share information relating to social security with the Department of Finance and Personnel and the Northern Ireland Housing Executive (or persons providing services to those organisations) for certain purposes. Those purposes are specified in subsection (3) and include improving the take up of certain reliefs and allowances, namely rate relief under Article 30A of the Rates (Northern Ireland) Order 1977, disabled persons allowance and the lone pensioner allowance, and the administration of such reliefs and allowances.

Clause 10: Unauthorised disclosure of information relating to particular persons

This clause creates a new offence relating to the unauthorised disclosure of information by persons employed by the Department of Finance and Personnel and members, officers or employees of the Northern Ireland Housing Executive as well as persons employed in the provision of services to those organisations. The relevant penalties are specified in subsection (5).

Clause 11: Provisions relating to sharing of social security information extended to Department

This clause extends certain references in the Social Security Administration (Northern Ireland) Act 1992 to enable the Department for Social Development to share information with the Department of Finance and Personnel for the purposes of the Department of Finance and Personnel’s functions relating to the administration of housing benefit.

Clause 12: Power to alter existing agreements under Article 21 of the principal Order

This clause amends Article 22 of the Rates (Northern Ireland) Order 1977. Subsection (2) provides that where the Department of Finance and Personnel makes an order altering the maximum level of allowance which may be allowed to a landlord under an agreement under Article 21 of the Rates (Northern Ireland) Order 1977, it may by order alter an allowance in an existing agreement. Provision is also made which enables the Department of Finance and Personnel, by order, to alter an allowance in relation to hereditaments of specified classes. The latter power will be available whether or not a change in the maximum level of allowance under Article 21 is being made. It is likely that this will be applied in respect of NIHE properties and also the domestic private rented sector (following the introduction of the rating of empty homes). Subsection (3) provides for such orders to be subject to affirmative resolution of the Assembly.

Clause 13: Certain regulations under Article 23A of the principal Order to be subject to negative resolution instead of affirmative resolution

This clause provides that regulations made only for the purpose of amending the list of registered housing associations whose properties are subject to standardised rating liability will be subject to negative resolution, rather than affirmative resolution, of the Assembly.

Clause 14: Removal of exclusion of private dwellings from deemed completion days for new buildings

This clause is consequential on the introduction of the rating of unoccupied domestic properties. It removes the exclusion of private dwellings from the completion notice process used to determine when properties are deemed to be completed for the purposes of rating unoccupied property.

Clause 15: Temporary power to make grants to councils relating to maximum or minimum capital value changes

This clause enables grants to be awarded to councils in respect of the 2009/10 and 2010/11 rating years, as regards the reduced maximum capital value of £400,000. It is intended that this would be levied at 100% of the difference in the product of the rate, between a £500,000 and £400,000 threshold, in 2009/10 and 50% in 2010/11.

Clause 16: Interpretation

This clause provides for the interpretation of certain words and phrases used in the Bill.

Clause 17: Minor and consequential amendments

This clause introduces Schedule 1 (Minor and consequential amendments), which makes minor and consequential amendments to certain statutory provisions.

Clause 18: Repeals

This clause introduces Schedule 2 (Repeals), which sets out the statutory provisions that are to be fully or partly repealed.

Clause 19: Commencement

This clause provides for the commencement of the provisions of the Bill.

Clause 20: Short Title

This clause provides that the new legislation shall be known as the Rates (Amendment) Act (Northern Ireland) 2009.

FINANCIAL EFFECTS OF THE BILL

25. It is envisaged that the rating of empty homes could have administrative costs of around £1.5 million in the initial year, with lower costs in subsequent years. This measure is also expected to raise in the region of £6 million to £8 million per annum, along with increased revenue from properties that are currently occupied but declared vacant.

26. It is anticipated that the one-off reduction in rates for owner occupiers that install loft or cavity wall insulation in their homes and the full rate relief for the first occupiers of zero-carbon and low-carbon homes would cost up to £1.5 million per annum.

27. The costs associated with the new data sharing powers are likely to be minimal. However, there are likely to be increased costs and benefits from the increased take up of rate reliefs that the new powers are designed to facilitate.

28. In relation to the power to make grants to councils, relating to maximum or minimum capital value changes, the compensating payments would cost up to £1.5 million over two years.

29. In relation to the rates deferment scheme the financial cost of the scheme will be dependent on a number of variables, including the level of take up and the capital value of those properties for which the rate bill is being deferred. However, it is anticipated that over the medium to long term the scheme will be broadly revenue neutral. That is, as participants join and leave the scheme, it is likely that the revenue foregone each year will be matched by the additional revenue collected as deferred debts are paid. There will also be ongoing administrative costs associated with the deferment scheme.

30. The amendment to the level of allowance awarded under Article 21 could save between £2 million and £2.5 million per year. Actual savings will however be dependent on the final level of allowance set in the social rented sector and private rented sector.

31. In respect of the non-domestic measures the provision included in the Bill for industrial derating is only an enabling power and does not therefore in itself have any financial implications. The current estimate of carrying out the work associated with the next non-domestic revaluation is £4 million. Most of this is attributable to staff costs for Land and Property Services who have responsibility for this. If a transitional relief scheme is required following revaluation it is estimated this would cost £1.5 million, with the final cost dependent on the extent of the changes caused by the revaluation. The revaluation in itself will not raise any additional revenue, rather it will redistribute the same rating burden that currently exists.

32. In respect of the provision for a Small Business Rate Relief Scheme it is estimated that this would cost in the region of between £8 million and £9 million per year.

HUMAN RIGHTS ISSUES

33. The provisions of the Bill are considered to be compatible with the European Convention on Human Rights

EQUALITY IMPACT ASSESSMENT

34. A series of equality impact assessments have been carried out in relation to the key provisions.

35. An equality impact assessment of the proposal to rate empty homes suggested that those council areas which are most likely to be affected by this policy are disproportionately represented by persons with dependents, persons who are single and those from a Roman Catholic community background. However, it is important to note that there are benefits as well as costs for those council areas affected by the introduction of the rating of empty homes. That is, while more individuals may be asked to pay rates, this additional cost has to be compared against the added benefits that will also arise in these areas, including additional revenue for public services, an increase in the supply of housing and a reduction in urban blight and other negative effects associated with empty properties.

36. The equality impact assessment around the rates deferment scheme indicates that those most likely to benefit from the scheme are over 60 years of age, persons without dependents, persons with a disability, females and persons who are unmarried. This result reflects, however, the profile of this section of the population. The expected low take-up of this scheme means that the overall impact of the policy will be minimal.

37. There was limited evidence available to consider the equality impact of the rate rebate for energy efficiency improvements. The analysis could only examine the impact on persons from different age groups, those with and without dependents and persons from different community backgrounds. The results suggested that the rebate scheme would have a beneficial impact for persons over 60 years of age, families without dependents and persons from a Protestant community background, although the differential impact was only a marginal one in each case. There was no evidence to allow the impact of the rates holiday for low and zero-carbon homes to be examined.

38. In relation to the non domestic measures, it has not been possible to examine the impact of the next revaluation of non domestic properties. There are no significant equality implications associated with the freezing of industrial rating at 30%. An initial equality impact assessment of the small business rate relief scheme did indicate, though, that eligible small businesses are more likely to be located in wards which tend to have a higher proportion of persons from a Catholic community background.

SUMMARY OF THE REGULATORY IMPACT ASSESSMENT

39. An initial Regulatory Impact Assessment has been undertaken in relation to the small business rate relief scheme. This suggests that the scheme will not have a detrimental impact on the degree of competition in the market for goods and services affected by the policy. There is also no detrimental impact on small businesses.

LEGISLATIVE COMPETENCE

40. The Minister of Finance and Personnel had made the following statement under section 9 of the Northern Ireland Act 1998:

“In my view the Rates (Amendment) Bill would be within the legislative competence of the Northern Ireland Assembly.”

SECRETARY OF STATE CONSENT

41. A statement is required under section 10(3)(b) of the Northern Ireland Act 1998, on Secretary of State consent:

"The Secretary of State has consented under section 10(3)(b) of the Northern Ireland Act 1998 to the Assembly considering this Bill."

RECOMMENDATION

42. The Minister in charge of the Bill, Sammy Wilson, the Minister of Finance and Personnel has made the following recommendation as required under section 63 of the Northern Ireland Act 1998.

“As Minister of Finance and Personnel, I recommend this Bill to the Assembly as is required by section 63 of the Northern Ireland Act 1998.”