Minister warns rates levy would amount to water charging

An additional levy on rates would “represent a form of water charging”, the Infrastructure Minister has said.

Liz Kimmins told MLAs she will not shirk her responsibility to make “difficult decisions” or increase the “financial burden to households that are already struggling”.

A report was published in summer of 2025 with the support of a number of housing bodies warning that Northern Ireland’s wastewater infrastructure is facing a critical funding crisis.

The publication undertaken by Turley and Grant Thornton and commissioned by NI Chamber, suggested “a progressive and modest rates-based levy” could be introduced, allowing NI Water to access private capital and minimise pressure on the Stormont Executive’s budget.

Ms Kimmins told the assembly chamber she had not discussed an infrastructure levy with Finance Minister John O’Dowd, but any changes to rates bill would be a cross-executive matter.

“I have met with the NI Chamber of Commerce, the Construction Employers Federation and the NI Federation of Housing Associations to consider their report that proposed increasing rate spendings of hypothecated infrastructure levy to fund wastewater infrastructure.

“For me, that still represents a form of water charging which I have said clearly I will not introduce, and for the avoidance of doubt I will not add to the financial burden being faced by people here by imposing any form of water charges.

“I do recognise the constrained financial situation we all do, and we’re facing that collectively with difficult decisions required and we’ll continue to look at innovative new ways that we can maximise the delivery of vital infrastructure.”

She added: “So whilst that may be a solution and it’s been put forward, it is one that I think will lead to water charges.

“However the idea of the levy I think is one for, if it’s being considered in rates, it’s not one I can take a decision on.”

Alliance MLA John Blair asked the minister what changes her department had considered for revenue-raising to meet budget shortfall “particularly in relation to the investment required to provide flood risk management and mitigation”.

In her reply, Ms Kimmins said: “I’ll never shirk my responsibility in terms of what we have to consider in terms of difficult decisions that have to be taken, however adding a financial burden to households that are already struggling, for me is not the answer, because it just further challenges for people that we all represent.”

Sinn Fein MLA Declan McAleer asked for further assurance on water charges.

Ms Kimmins replied: “I’ve said on a number of occasions in this house, and it isn’t for the sake of it, it isn’t to just say, ‘well, I’m not doing it’.

“I think we all recognise that we have to look at things and see how we can maximise the budget and do what we can to get proper investment in our services, but the reality is why should the people across the north here pay the price for years upon years of under investment by successive British governments?

“People have said that that’s a soundbite or it’s an excuse. It’s absolutely not an excuse. It’s a reality.

“And I will not stop reminding people of that because I think it’s important, we can’t give cover for a failure to deliver a budget that meets the needs of people here.

“People here are taxpayers. They are as much entitled to good services and good investment as anyone else across these islands.

“So we continue to make that case to the British Treasury to ensure that they understand the impact of decisions that have been taken for many years.”