Strategic Review of Rating - Terms of Reference
Date published:
In December 2024 the Finance Minister outlined that the Department of Finance would be undertaking a comprehensive Strategic Review of all rates support provided by the Executive. In the non-domestic rating system alone more than a quarter of a billion pounds is allocated each year to rates support.
Year 1 of the Strategic Review (2024/25) was focused on the taxbase analysis and policy proposals underpinning the supplementary consultation on options for two domestic rating policies; Maximum Capital Value (Max Cap) and Early Payment Discount (EPD). That consultation process (from 29 Jan to 25 April 2025) was aimed at refining the progressivity of the tax, a key element of preparing the groundwork for a future domestic revaluation in 2030.
Year 2 of the process for 2025/26 will look 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 to be 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 and had been highlighted by business stakeholders in their engagement with the Department and Ministers following the restoration of the Executive in February 2024.
The Department will make contact with stakeholders directly as the review process progresses. Queries can be directed to ratingpolicy@finance-ni.gov.uk in relation to the review.