To ask the Minister of Finance when she intends to bring proposals to the Executive on changes to the rating policy.

Dr Archibald

With your permission, Mr Speaker, I will answer questions 5 and 11 together. Over 1,400 responses were received from ratepayers, businesses and a range of other stakeholders.

It is for that reason that I wanted to ensure that, with my officials, I took the time to examine carefully all the views from those who responded.

I will be engaging with Executive colleagues on the next steps and will continue my engagement with business bodies, organisations and wider society to work together to build a progressive rates system that grows our tax base and stimulates our economy. As part of that work, I have now presented short-, medium- and long-term rating policy proposals, including a more strategic, longer-term policy approach to the Executive for consideration. It is my intention to make a statement to the Assembly after the Executive have agreed the way forward.

Ms Ennis

I thank the Minister for her response and for her efforts in that regard. More specifically, is she able to give an update on industrial derating?

Dr Archibald

I have spoken on that issue a number of times in the Assembly, because I recognise the role that industrial derating has played in supporting 4,400-plus manufacturers and its contribution to our having a strong manufacturing sector here. The measure supports indigenous businesses, with over 50% of the recipients being eligible for a small business rate relief valuation at a threshold of £15,000 net annual value (NAV). Anything that I and the Executive do on our rating policy has to align very much with what we are trying to achieve with our economic vision of creating good jobs and improving productivity, decarbonisation and regional balance.

Dr Archibald

There are a number of factors at play that have had an impact on our village, town and city centres over recent years, not least the proliferation of online shopping. It is just so handy for many people to choose that option. The Executive need to take a collective approach to supporting our towns and our high streets. When I engage with businesses and business organisations, they outline a number of pressures that they are facing on a lot of fronts and tell me that general costs have increased very significantly. Their rates bill is one of the many bills that they receive. Furthermore, it is important to recognise that rates are our major source of income generation. When we want to do anything to give support or rate relief, we have to recognise that that is money either that is not there to be spent on public services or that will increase everybody else's rates bill. That is the balance that we have to strike with the rating system. We want to stimulate our economy, but we also need to be able to fund our public services.

Ms McLaughlin

The Budget sustainability plan explores raising rates this year from 2·5% to 4%. Ratepayers have seen increases in the regional rate and the district rate. As you indicated in your response to a previous question, rates are increasing and services are decreasing. Given that previous answer, will you commit to not putting the burden on ratepayers for the rest of the mandate?

Dr Archibald

The Budget sustainability plan reflects the amounts that will have to be raised through the regional rate to meet our obligation to raise the £113 million that needs to be raised over two years. The decision that the Executive took last year to keep the increase in the regional rate in line with inflation was taken to do exactly as the Member outlined, which was to mitigate the impact that would be felt by households and businesses. That was despite the pressure that we were getting from the Treasury as a result of its revenue-raising demands. There is a good, strong argument for that Executive decision, and, as I said to Mr Donnelly, we have to get right the balance between being able to fund public services and ensuring that the burden does not fall too hard on too many people.