Rates Announcement Follows Day of Division

After a day in which the DUP accused both the Ulster Unionists and the SDLP of 'trying to bring down the Assembly', things turned today to the less contentious matter of rates.

The Finance Minister Peter Robinson, outlined details of his review of domestic rates, with his announcement including a 'tax' on both derelict land and empty house.

Yesterday, a marathon debate on the draft Budget and much discussed Programme for Government - after which the two parties backed an Alliance motion – and voting unsuccessfully against their Executive colleagues, led the DUP to warn that the structure of the Assembly was built around a mandatory coalition.

Peter Robinson said: "The basis upon which any coalition government can move forward is on the basis for a programme for government.

"So that there is no doubt at a later stage - without an agreed programme for government - there cannot be government," he said.

Today, however, there's less division with news on rates revealed - and it's good news for some.

For example, bills in the most affluent areas are likely to be cut by April 2009, as Peter Robinson said the rating 'cap' would fall from £0.5m valuation to £400,000 - but would cost the budget £2m. He also said that around 5,000 homeowners would benefit.

He explained that other changes envisaged for next April include a 20% lone pensioner discount for those aged 70 and over; increasing the savings threshold for low income rates relief from £16,000 to £50,000 and commissioning a voluntary sector study to improve take-up levels of rate relief.

The Minister said that by April 2009 he also hoped to introduce a scheme allowing pensioners to defer payments until they sell their property or die, although relatively few people are expected to avail because they want to leave an inheritance.

Mr Robinson also said that he plans to rate empty homes at 100% to encourage their use - as a potential boost for those seeking homes for the first time - possibly by 2009, and expects a derelict land tax affecting mainly old industrial areas around Belfast by 2010.

He said that introducing rating of vacant homes should cost less than £15m.

(BMcC)