Executive ministers set to consider 4% increase to the regional rate

Executive ministers will later consider a proposal to increase the regional element of rates bills by 4%.

The PA news agency understands that Finance Minister Caoimhe Archibald has circulated a paper outlining the proposed inflation-matching rise.

The Executive’s deliberations on rates bills come amid a demand from the UK Government for the devolved administration to raise an additional £113 million of its own revenues in the coming financial year.

That sum could be achieved with a 15% rise in the regional rate, however First Minister Michelle O’Neill and deputy First Minister Emma Little-Pengelly have made clear they will not countenance an increase on that scale.

A 4% increase in the regional rate would equate to around £30 million extra in revenue.

However, any rise could also see an increase in payment defaults and also more applications for rates relief – so the actual sum generated may be below £30 million.

Overall rates bills are made up of the district rate, which is set by local councils, and the regional rate, set by the Executive.

The Treasury has offered to write off almost £600 million of Stormont debt, conditional on the Executive raising the £113 million and producing a plan to deliver sustainable finances.

The stipulation is a key element of a £3.3 billion financial package drawn up by the Government to support the return of devolution in Northern Ireland.

The First and deputy First Ministers have said the settlement offered by the Treasury does not go far enough to put Northern Ireland on a stable financial footing and have vowed to press the Treasury to make significant changes to enhance how the region is funded.

Ms Archibald’s paper on rates is one of several items on the Executive’s agenda on Thursday.

Ministers will also hear updates from Health Minister Robin Swann on efforts to tackle Northern Ireland’s spiralling waiting lists and from Education Minister Paul Givan on issues facing the special educational needs sector and on a controversial move by the UK Government to repackage £150 million of funding that had been ringfenced for integrated education schools.