John O'Dowd
Upper Bann · Sinn Féin · Northern Ireland
“As I set out in response to the previous question, we have in place the vacant property rate relief scheme and the small business rate relief scheme, which are very successful. I set aside £10 million in the draft Budget for small business rate relief to be invested.”
“I am particularly keen to hear from those impacted by vacant commercial units and especially about how any phased increase can be implemented in a sustainable way that is fair, proportionate and sustainable within the tax system.”
“I outlined my intent to take that approach in my statement on 18 November, alongside the fact that reform of rating policy should support growth, make better use of property and ensure that the system is fair, proportionate and aligned with wider economic objectives.”
“The accelerator will operate alongside our highly successful Back in Business scheme, which has helped to bring over 100 vacant high street properties back into use since May 2024. Those issues have been the subject of considerable interest and comment in the Assembly, and it is right that we grasp the nettle now.”
“There are no circumstances in which a hard border would be good for the people of Ireland; it would not be good for anyone. Those who suggest that are being naive at best and dangerous at worst, in the sense of not understanding this society. <BR /> <BR />Rural communities along the border are one and the same.”
“This announcement represents the next step in that. That said, I also put on record my intention to strengthen support for small businesses. In that vein, £10 million has been set aside in the draft Budget to broaden the impact of the small business rate relief scheme in order to increase the number of businesses that can benefit from it.…”
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“The current scheme applies the 50% tax concession for 24 months to build a solid platform for new business occupation in the difficult first two years of trading. I recently visited a business in Mid Ulster that had taken over a property that had been vacant for nine years. That premises is likely to have stayed empty for much longer without the scheme. It is now a modern enterprise, boosting footfall for neighbouring businesses. The business owners emphasised how important the two-year rates discount had been in helping with cash flow; it allowed them to invest in their venture. <BR /> <BR />Our high streets and shops are vital in supporting the local economy and employment. For many, they are essential for not only their daily supplies but meeting and socialising with others. They are at the heart of our local communities.”
“Before dealing with the order, I will set out the background to the measure. The purpose of today's legislation is to extend the Back in Business scheme for the 2026-27 year. The scheme is designed to bring long-term vacant high-street properties back into use, specifically those that have been empty for at least 12 months and are unlikely to be reoccupied without support. <BR /> <BR />The scheme was first introduced as part of a package of measures aimed at assisting ailing businesses and improving the appearance of our town and city centres after the economic downturn. The original scheme provided a concession that allowed a 50% reduction to apply for the new occupier for one year only.”
“I have presented a proposal to the Executive in relation to the regional non-domestic rate. The Executive have agreed it, and I now present that proposal to the Assembly for agreement. It is presented in the absence of any alternative proposals from anywhere in the Chamber.”
“At times, those decisions can be challenging and difficult. They often will take on vested interests, but, sometimes, those vested interests need to be taken on if we are to have a fair and equitable rating system and the funds that we need to invest in our public sector and economy.”
“Yes. Just to respond quickly to the Member's point, I was aware, and, to answer Dr Aiken's point, there was no breakdown in communication between LPS and my Department. I set aside £10 million in the draft Budget for the very purpose of supporting small and medium-sized enterprises, including the hospitality sector. Under the current scheme, around 50% or more of the hospitality sector and pubs etc benefit from the small business rate relief scheme. Under my proposals, that will increase significantly. There will be an opportunity for Members to return to that issue when we get to the three-year Budget. <BR /> <BR />As for other points, the ongoing review of rates etc will continue. I can bring it only so far. I can go out to consultation and bring recommendations to the Executive, but it is up to the Executive to make decisions.”
“Perhaps if you had been concerned about them several weeks ago and allowed the space for an informed and full debate around Reval and for proper engagement, we could have reached the point where we met the needs of all sectors as best as we could in a rating system where there is always going to be a requirement to raise revenue to put back into the public sector and the economy, but that simply was not the case.”
“You did. The record will show that you did. <BR /> <BR />Understandably, the Reval issue was raised again. As I said in a previous debate on that matter, all of a sudden, many Members now realise that there are sectors other than the hospitality sector, and they are very concerned about those other sectors. They were not concerned about those sectors when the Reval debate was going on or before I made my decision. No Member ever raised with me the issue in relation to retail, the manufacturing sector, warehouses, the office sector or cinemas. Now there is legal action, and my Department and I are involved with pre-action letters etc, so I am limited in what I can say. All of a sudden, Members have concerns about those matters. You were not concerned about them several weeks ago.”
“You missed the point. When you had the opportunity to vote for public-sector pay, you voted against it.”
“The MLA award is separate to this, and it has been set by an independent body, but you have missed the point.”
“I will when I finish my point. You voted against a pay rise for MLA staff a number of years ago. I said to you at the time that you did not follow the example of big Jim Larkin; you followed the example of wee Jim Allister, because you and he voted in the No Lobby. The one opportunity that you ever had to increase public-sector pay, you voted against it.”
“As for the challenge on what that money is going to, it is going to childcare for 29,000 families that have around £19 million in savings as a result of the Executive's intervention and support for childcare. It is going to support the 200,000 extra elective care treatments and appointments that there have been this year. It is going to public-sector pay rises. Mr Carroll said that public-sector pay is not rising. Public-sector pay has risen as a result of the work of the Executive. Despite the challenges that the Executive face, public-sector pay has risen. I will remind you again that, at every opportunity that you had to vote for a public-sector pay rise, you voted against.”
“He went on to speak as leader of the Opposition; he spoke for maybe eight to 10 minutes and said a whole lot but said nothing. I still do not know at what level the SDLP would set the regional rate. Should it be below inflation? If so, where should it be below inflation? He said that he believes in being honest with the public. If he is going to be honest with the public as leader of the Opposition, he needs to set out what he believes the regional rate should be. Should it be 0%, 1%, 2% or 3%? What should it be? Answering that is being honest with the public. As I said in my opening remarks, I believe that the public acknowledge that there needs to be an increase annually to manage the costs that are there.”
“I think that ratepayers acknowledge the need for annual increases to their rates, because they understand that, if we are to continue to provide front-line public services, public-sector pay awards and support to the economy, those costs will increase slightly each year and there will be a need to increase the contribution to rates. Of course, public funds should be spent effectively and efficiently, and each Minister has a role in scrutinising their Department's spend, just as there is a role for each scrutiny Committee in this place to ensure that public funds are properly spent. <BR /> <BR />Mr O'Toole spoke as Chair of the Committee and outlined the Committee's role. Again, I put on record my thanks to the Committee for carrying out its role on the matter.”
“I thank the Members who have contributed to this important debate, and I thank members of the Finance Committee for their comments and for facilitating the debate with their timely scrutiny. <BR /> <BR />As always, it has been an interesting debate, if not always an enlightening one, with a range of views expressed. As I stated, the 2026 order sets the regional rate for the forthcoming year, and the Executive have aimed to strike a balance between the needs of ratepayers and the need to raise vital funds for public services.”
“Thank you, a Phríomh-Leas-Cheann Comhairle.”
“Article 1 sets out the title of the order and gives the operational date as the day after it is affirmed by the Assembly. Article 2 provides that the order will apply for the 2026-27 rating year through to 31 March 2027. Article 3 specifies 30·79p in the pound as the non-domestic regional poundage and 0·5559p in the pound as the domestic regional rate poundage. <BR /> <BR />I look forward to hearing Members' comments about the order.”
“<BR /> <BR />I am committed to continuing to develop the rating system to ensure that it is fair, equitable and progressive and that it is aligned with the Executive's economic vision. The strategic review process continues to be taken forward at pace, with four supporting measures having been assessed. In November, I announced that the process would be expedited further, with completion of reviews for all support measures by the end of the 2027-28 rating year. I will soon announce the next tranche of measures to be reviewed in 2026-27. <BR /> <BR />I will move into more technical matters that are covered by the order. The main purpose of the order is to give effect to the Executive's decision on the regional rates for 2026-27.”
“<BR /> <BR />The legislation before you today will fix two regional rates in the pound for 2026-27: one for domestic ratepayers and one for non-domestic ratepayers. As I have noted, the Executive agreed an uplift of 5% for domestic ratepayers and 3% for non-domestic ratepayers. While we are acutely aware of the huge pressure on our public services, in setting the regional rate, we have aimed to balance that with the pressures facing households and businesses. That is why our means-tested support and other domestic support measures are among the most generous across these islands. We will continue to provide that support to domestic ratepayers for 2026-27. On the other part of the tax base, over a quarter of a billion pounds in support continues to be provided to 75% of non-domestic ratepayers in the system.”
“That funding is vital for our public services, including healthcare and education. <BR /> <BR />Breaking down the rates bills, regional rates represent around half of a typical bill, with the other half being made up by the district rate. The Executive have no decision-making power over the rates poundage, which is set by councils. District councils and the Executive increasingly have to undertake a difficult balancing act between funding services in line with public expectations and affordability. My Executive colleagues and I recognise the pressures on households and businesses. We therefore aim again this year to strike the balance in the fairest way possible to keep rates increases at a minimum while providing the funding that is required for public services across our Departments.”
“Pending the completion of the Budget process, I will make the case to my ministerial colleagues for the further broadening of small business rate relief support and an increase in the number of recipients of small business rate relief for 2026-27. That support will be applied retrospectively from 1 April 2026, if it is agreed at Executive level. <BR /> <BR />I will turn to the impact of today's order. The revenue raised from the regional rates will provide around 5% of the Executive's 2026-27 Budget. Taken together, the amount from domestic and non-domestic regional rates that goes to the Executive is forecast to raise around £900 million in revenue for the forthcoming financial year, of which £47 million is derived from the annual uplifts that will be applied by today's order.”
“All those measures will accompany rates bills issued from 1 April 2026. <BR /> <BR />The small business rate relief scheme will continue to provide vital support to almost 30,000 businesses. Small businesses are the backbone of our economy. I want to seek extra help for those businesses, which provide vital employment and support workers, families and communities. That is why I progressed the consultation on further enhancements to the small business rate relief scheme. I have set aside around £10 million for those scheme enhancements in my draft Budget proposals. Having assessed the feedback from the consultations, I feel that the enhancements to the small business rate relief scheme is funding well invested in our business sector.”
“My immediate focus is on advancing the legislation required to facilitate the annual billing exercise for rating systems and the related issues around seeking Executive agreement of the draft multi-year Budget, following the consultation closing last week. It is my intention, following that, to concentrate efforts on the next steps to be taken in respect of the Reval2026 process. <BR /> <BR />As well as this order, which sets the new regional rates poundage for 2026-27, the Assembly will today debate measures relating to the extension of business support measures. There will be a debate on the further extension of the Back in Business scheme and the rural ATM scheme. This morning, my Department laid the legislation that will extend the small business rate relief scheme, in its current form, into the 2026-27 year.”
“As Members are aware, legislation to set the regional rates for businesses and households is brought forward around this time each year. To facilitate the billing process, the Executive met on 12 February and agreed the regional rates that are before the Assembly in the order. The order legislates for an uplift of 5% for domestic properties and an uplift of 3% for non-domestic properties. Those uplifts continue the approach that was taken by the Executive last year and reflect the levels proposed in the draft multi-year Budget for the 2026-27 rating year. <BR /> <BR />Members will also be aware that, on 29 January, I outlined my decision to stop Reval2026, meaning that rates bills that are issued in April will be based on the rateable values in the current valuation list, which are set at 2023 values.”
“Go raibh maith agat, a Phríomh-Leas-Cheann Comhairle.”
“The Member is right that a straight line can be drawn from Brexit to this problem. It is a straight line the whole way. The prospect of replacing the funding to match what we have received from the SPF or that which we previously received from the European social fund has gone. Its scale is unachievable by the Executive. I repeat: the Executive will make decisions on the allocation of funding, but every pound that we spend on area A leaves one pound fewer to spend in area B. In the circumstances, we are talking about approximately £15 million per annum. I encourage Members to keep their focus on where it is needed, which is on the British Government.”
“If we were able to change the funding profile, that would be helpful. In our continued engagement with the Government, as I have said repeatedly, the overall funding — the global pot — that we are dealing with also needs to be taken into account.”
“We had no input into the profiling of the money, and the Member is right: the roller coaster nature of how we are funded makes my job more difficult. Earlier today, before the Chancellor spoke, I received a briefing on the funding from the Chief Secretary to the Treasury. The Chancellor then made her address, after which the paperwork was published. I want my officials to go back and engage with the Treasury about the funding profile. I also have questions about whether previous funding was sufficiently taken into account in the award that we received. The allocation of a £5 billion bailout for English councils has raised a number of questions, the answers to which I remain uncertain. I therefore want my officials to engage with the Treasury, and I will engage at a ministerial level as well.”
“Work has commenced on the open-book programme. We agreed the terms of reference late last week. Departments are engaging with my Department and the Treasury on that. It is a very short time frame. I would like to see that work completed within a couple of weeks. The case that we present can be presented within two weeks. The Treasury will have its wishes and asks from the process, but there is only so much work that you can do in two weeks. You can dive only so deeply in these matters, but I am confident that we can present our case.”
“As I said, the decisions that the Executive take are a matter for the Executive. At this stage, however, it would be a huge mistake to take focus away from the British Government's responsibility around the local growth fund. They created the problem; they need to resolve that problem.”
“It will be up to the Executive to decide how the funding is spent. I have no doubt that the Education Minister will be making a very strong case in relation to the SEN pressures that he faces. The Health Minister will be making a very strong case. The Economy Minister and others will be making very strong cases as well. <BR /> <BR />I will clarify what exactly is happening with the local growth fund. Next year, the fund is being delivered directly by the NIO. In the following years, the fund will be delivered by the Executive, but the funding model is dictated by the British Government, so that split between capital and resource remains. That challenge remains. The Executive will not have the authority or the powers to change that split, so the challenges for the sector will remain.”
“There is a need for proper funding. I referred in my statement to the stabilisation fund that we had in 2024-25 and 2025-26 of around £520 million. That should have been baselined into our funding. I am engaging and will continue to engage with the British Government about that specific fund and about other funding that the Executive require to deliver public services and to transform them as well.”
“It is also worth noting that, in November, just before the Chancellor made her Budget announcement, the Department of Health and Social Care in England was bailed out to the tune of £1 billion, because it simply could not keep pace with the pressures that it was facing. Therefore, in the Department of Health and with SEN, we are facing the same common issues that are faced in England and elsewhere.”
“That is quite and crystal clear. I hope that all those commentators who we regularly have to read and hear on our airwaves talking about the Executive's mismanagement of funds will now realise the true genesis of the issues that we face. The British Government today bailed out their councils to the tune of £5 billion because they could not deliver against the scale of challenges that they face in the delivery of SEN. We face the same challenge, whether it is in the Department of Education, the Department of Health, the Department for Economy or in other areas where we are delivering front-line services to children and young people with SEN. We simply cannot keep pace with the growing demand for it, as has been seen in England.”
“I think that many workers, families and businesses will be sitting back and reflecting on the Chancellor's statement today, and particularly on that matter. From where they are sitting at the moment, they do not see it either. Therefore, I think that it is vital that the Government step up to the mark and invest in public services and in the economy, grow the economy, and allow us as an Executive to invest to transform our public services, to invest in our economy and to support our local businesses and our workers. Their current strategy is not achieving that.”
“I would like to see that move ahead, and I will be making an announcement in the Chamber next week in relation to the continuation of the small business rate relief scheme and a number of other rates matters. Funding is set aside. Ministers may agree to that funding continuing, they may add to that pot or they may take from that pot. Those are discussions that have to take place.”
“The funding referred to for business rates in my statement relates to the fact that the Government have introduced a scheme to compensate for the introduction of Reval in England. We have not moved ahead with Reval, so that is a benefit to the hospitality sector; other sectors will argue that it is to their detriment. As I said, all Barnett consequentials come to the Executive, and it is a matter for the Executive to decide how those Barnett consequentials will be distributed. This funding will go into the overall pot of the three-year Budget, and Ministers will have a decision to make on the three-year Budget and the areas that will be supported across it. I have proposals in my draft Budget for a £10 million fund for the business sector.”
“I have also asked the Executive to set aside a number of specific meetings to discuss the Budget in the run-up to the start of the new financial year. A work programme is mapped out in front of us, and a significant amount of work has been done already on access to the reserve claim, today's announcement and more work to be done, but, as I said, there is a work programme mapped out in front of us.”
“I thank the Member for her question. The Budget consultation closes today, and over 300 responses are in. I welcome those responses very much. When I published my draft Budget in January, I said at that time that I was in listening mode and that it was important that we went out to consultation to allow the public, the business sectors and others to have their say on this. They have responded in quite significant numbers. <BR /> <BR />I have completed a round of engagement with my Executive colleagues in bilateral format. Those meetings, in my opinion, were positive and constructive. At this stage, we are going through the open-book process with the Treasury. Following the open-book process, I want to open up full political engagement with the Government in relation to proper funding for this place.”
“The open-book process gives us a great opportunity to show the Treasury and others the huge challenges that the Executive face in delivering front-line public services. As I said to Mr O'Toole, the very fact that the Government have had to bail out their own councils to the tune of £5 billion shows the scale of the underfunding of public services. I have said in the Chamber previously that the work that I and my predecessor, Caoimhe Archibald, have done has ensured that we get a fairer slice of the cake, but the cake remains far too small. Today's announcement proves that once again. We are working our way through the open-book process with the Treasury. I believe that that will give us the foundations for a very firm case to present to the British Government that they need to fund this place properly.”
“I thought that we had agreed last week to stop being spokespeople for the NIO, and that the Executive parties would work in a collegiate and collaborative manner with everyone in the Chamber to put a strong case to Westminster that it needs to properly fund this place in order to allow the Executive to deliver public services and the transformation that is so badly needed in a range of areas. <BR /> <BR />To answer the Member's specific question, there will be many demands on the funding, which will be included in the multi-year Budget. It will be for the Executive to decide on the final outcome of the multi-year Budget and how and where funds are allocated. The Member is again making a technical error. The responsibility for the underfunding of the local growth fund rests fairly and squarely with the British Government.”
“If one thing has been proven today, it is that the allegation of financial mismanagement that has been thrown at the Executive by Mr O'Toole and some commentators has been blown out of the water. The British Government had to bail out their own councils to the tune of £5 billion because they had been historically underfunded and unable to deliver against the pressures that they face in areas such as SEN. The Executive face similar pressures in relation to SEN and a number of other areas of Health, as well as issues related to other Departments. Let us knock the nonsense about financial mismanagement on the head.”
“A multi-year Budget will provide Departments and public-sector organisations with certainty and the ability to make long-term plans. It will enable strategic investment that delivers lasting benefits for our economy, our environment and our society. I remain committed to working in partnership with my ministerial colleagues to find a way forward on the multi-year Budget in order to enable strategic investment that delivers lasting benefits for workers, families and businesses. I remain committed to continuing to engage with the Treasury to bring about a fairer funding outcome for workers, families and businesses.”
“I will continue to work in partnership with Executive colleagues in the time ahead, including looking collectively at how we prioritise the funding available, including the additional funding announced today.”
“<BR /> <BR />While significant challenges remain, it is essential that the Executive grasp the opportunity presented now to set a multi-year Budget. The consultation on the multi-year Budget closes today. As of lunchtime today, over 300 responses had been received. I thank those who have contributed to the consultation. It is important that the views of our citizens, business and communities are heard as we work together to find solutions and deliver a multi-year Budget that makes the best possible use of the limited resources available. <BR /> <BR />In parallel to the consultation, I have been continuing to engage with Executive colleagues.”
“I continue to make the case to the British Government regarding the restoration of the stabilisation fund to help stabilise public services and bring about the transformation of those services to make them fit for now and the future. <BR /> <BR />To strengthen our case for fairer funding for public services, the Executive are working with Treasury to review the Executive’s spending and pressures through an open-book review of departmental spending. That will support a fuller understanding of the significant challenges that we face. It is intended that the exercise will be completed by mid-March, with the outcome of the process supporting the Executive in their efforts to agree a multi-year Budget. The review will also inform wider discussions on Budget sustainability and negotiations on the fiscal framework.”
“As demand for public services has grown, as witnessed in SEN provision and healthcare for the elderly, so has the cost of delivering the services that our people rightly expect and deserve. The delivery ambitions of Departments substantially exceed the funding available both for resource and capital budgets many times over. There remains a significant and unsustainable gap between our ambitions and the resources at our disposal. Addressing that disparity to provide sustainable services into the future will require adequate funding from Westminster for public services, as well as substantive reform and meaningful transformation in how we design and deliver our public services.”
“<BR /> <BR />As Members will be aware, following negotiations, the Treasury has recognised the significant challenges facing the Executive, as well as the savings realised in 2025-26, and has agreed to provide the Executive with a reserve claim of £400 million resource DEL in 2025-26. That is repayable over three years: £80 million in 2026-27; £160 million in 2027-28; and £160 million in 2028-29. <BR /> <BR />While the additional funding is welcome and will provide assistance to the Executive, the reality is that severe pressures on the Executive’s finances remain. The loss of the £520 million stabilisation funding provided by the restoration package in 2024-25 and 2025-26 has made delivering front-line public services and balancing the Budget an impossible task.”
“<BR /> <BR />Ahead of the spring forecast, I wrote to the Chief Secretary to the Treasury seeking clarity on the funding, particularly as special educational needs costs continue to rise and have become a significant contributor to the financial pressures facing the Executive. It was important that there was parity of treatment. Therefore, I welcome confirmation today that the Executive will receive funding from the announcement. The funding is primarily resource DEL, with £9 million in capital funding over the three-year period. The breakdown of the resource DEL funding is as follows: an additional £227·8 million in 2026-27; £5·6 million in 2027-28; and £144·9 million in 2028-29.”
“Thank you for the opportunity to update Members on the Chancellor’s spring forecast. The forecast set out that the Executive will receive an additional £390 million over the next three years, £380 million of which is resource departmental expenditure limit (DEL) funding, with £9 million in capital. The majority of the resource DEL funding — £361·2 million — follows a decision taken in Whitehall earlier this month, when the British Government announced a £5?billion package to help to address the debts that local councils in England had built up in recent years in providing special educational needs (SEN) support. The remaining £17 million resource DEL is from decisions taken in respect of business rates.”
“I request that the Assembly agree to the suspension of Standing Order 39(2) in order to allow the Bill to complete its passage in a shorter time frame and to enable the Bill's Final Stage to occur on Tuesday 10 March 2026. <BR /> <BR />When the Budget Bill completes its passage through the Assembly, there are still further steps to be completed before Royal Assent is secured. There will be an opportunity for the Assembly to discuss in full issues relating to the Budget Bill at its upcoming Final Stage on, if the motion is agreed, Tuesday 10 March 2026.”