Latest developments in rating policy
This page provides details of the latest policy developments on the Northern Ireland Rating System. It was last updated in December 2025.
Strategic Review of Rates - Small Business Rate Relief Options Consultation
Following on from the Finance Minister’s Oral Statement on 18 November 2025 the Department launched a Consultation on 4 December 2025 to gather views on policy options on Small Business Rate Relief to help inform any future policy proposals put to the Executive.
The Consultation will close on 29 January 2026.
A link to the consultation can be accessed below:
Finance Minister Oral Statement - Rating Policy Update on Strategic Road Map
The Minister of Finance gave a statement to the Northern Ireland Assembly on 18 November 2025 focusing on the progress of the Strategic Review of Rates supports and the next steps to be taken by the Department.
The statement highlighted that four policy reviews, Maximum Capital Value (Max Cap), Early Payment Discount (EPD), Non-Domestic Vacant Rating (NDVR) and Small Business Rate Relief (SBRR) have now been completed since the process launched last year.
The Minister also added that the Strategic Review of all rates support will now be completed by the end of 2027 to 2028 rating year.
The Minister also announced that he intended to consult on changes to support for small businesses though the Small Business Rate Relief scheme currently provides vital support annually for almost 30,000 businesses here.
The Minister’s full statement can be accessed from the link below:
Strategic Review of Rates - Small Business Rate Relief (SBRR) and Non-Domestic Vacant Rating (NDVR)
Year 2 of the strategic review of the rating system for 2026 to 2027 is now looking at two policy measures within the non-domestic rating system. The first measure is the Small Business Rate Relief (SBRR) scheme including the scope for enhanced sectoral targeting and application.
The second measure currently being looked at is the exclusion elements and liability level within Non Domestic Vacant Rating (NDVR). Both of those policy areas were selected due to their urgent strategic importance after being highlighted by business stakeholders in their engagement with the Department and Ministers following the restoration of the Executive in February 2024.
The Terms of Reference for 2025 to 2026 builds on discussions already held with business groups in recent weeks in preparation for the reviews. This process will use the evidence-base from the research undertaken by the Ulster University’s Economic Policy Centre into the cost of doing business here and allow us to gather the latest information on the distribution of current support and formulate policy proposals for consultation in the autumn.
Strategic Review of Rates - Early Payment Discount (EPD) and Maximum Capital Value (Max Cap)
Year 1 of the strategic review of the rating system for 2025 to 2026 has looked at two policy measures within the domestic rating system. The first measure is an elevation of the current maximum capital value of £400,000 to £485,000 the second measure being the reduction of the current level of Early Payment Discount from 4% to 2%. Both measures raise additional revenue, but do so in a proportionate and progressive way, utilising the full features of the tax.
A Supplementary consultation on Domestic Rating Measures opened on 29 January 2025 following the analysis of the revenue raising consultation, along with supplementary engagement undertaken by the Department. This consultation closed on 25 April 2025.
Cost of Doing Business in NI
In December 2024 the Minister commissioned the University of Ulster Economic Policy Centre to conduct a sectoral cost of doing business study. This Cost of Doing Business Study covered a broad range of factors including the impacts of the recent Budget announcements around additional employer National Insurance Contributions and increases to the national minimum and living wages, as well as other contributing factors such as insurance, property and energy costs and the disparities in tax regimes, such as VAT, across the UK and Ireland.
Details on the final report can be found below.
Strategic Roadmap for Rates
Following on from the 14 week consultation carried out on 7 proposals for Domestic and Non-Domestic rates in November 2023 the then Minister Dr Caoimhe Archibald announced on 9 December 2024, her plans to set out a strategic roadmap for the local rating system which included:
- Undertaking a comprehensive Strategic Review Cycle of all rates support provided within the system, initially reviewing Small Business Rate Relief Scheme and Non-Domestic Vacant Rating exclusions.
- Commissioning research on the cost of doing business.
Also 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. The consultation closed on 25 April.