RICS Northern Ireland Public Affairs and Policy Blog

The Social Development Minister, Nelson McCausland MLA, has signalled his intention to introduce a Draft Business Improvements Districts Bill before the summer recess.

It is hoped that, subject to passage through the Northern Ireland Assembly, the Bill will receive Royal Assent by the end of 2012. The Minister indicated that a statutory framework would then be in place by the summer of 2013.

It is not anticipated that additional funding will be provided by the Northern Ireland Executive, however support for town centres will continue in the form of town centre master plans and public realm schemes.

The Minister advised the Northern Ireland Assembly that some areas in Northern Ireland have started work on BIDS proposals which can take up to 18 months to two years to develop.

The Northern Ireland Executive has announced that a rating revaluation of non-domestic properties will take place in 2015. This follows the postponement of the revaluation scheduled to take place in 2010/11. The cancellation of the last revaluation means that the current Valuation List dates back to 2003.

The Finance Minister, Sammy Wilson MP MLA, has stated that the revaluation "is not a panacea for all. It is about restoring fairness in how the burden is shared, not about granting widespread relief."

Land and Property Services will shortly begin the process of revaluing approximately 72,500 non-domestic properties in Northern Ireland. 

On the 1st April the Empty Premises Rates Relief Scheme came into effect in Northern Ireland. The measure has been created to help long term empty retail premises back into business.

The Relief Scheme allows for 50% rate relief for up to a year once long term empty retail premises become occupied.

The relief scheme has to be applied for via the LPS Empty Premises Relief Application Form.  

The Northern Ireland Executive today published agreed outcomes following the Commercial Rating consultation and in particular the proposal to introduce an extension to the Small Business Rates Relief Scheme (SBRR) which will be funded through a supplementary levy which will be applied to large retail premises.

RICS Northern Ireland responded to the public consultation and provided evidence to the Northern Ireland Assembly Finance & Personnel Committee which reviewed the proposals.

In the evidence session RICS expressed concern that if a 20% levy were introduced it could impact on employment and investment in Northern Ireland. RICS advised that  rates support should be provided to genuine start up businesses occuppying vacant retail premises and sought assurances that if the levy is introduced it would only be in place for a three year period.

The proposals agreed by the Executive include:

• the provision of 20% small business rate relief on eligible premises with a net annual value of £5,001 - £10,000;
• the small business rate relief scheme will be modified so that those ratepayers that occupy multiple (more than 3) premises, of any size, are not eligible for small business rate relief;
• a supplementary levy to be applied to retail properties with a rateable value of £500,000 or more. The levy will be set an an average 15%, rather than the 20% proposed in the consultation document;
• where shop fronts or shop windows of empty retail premises are used for non-commercial purposes rate payers will continue to receive 50% empty property relief;
• a committment that the measures will apply for three years until 31 March 2015;
• support for new occupiers in long term empty shops (retail premises empty for 12 months or more) to retain 50% empty property relief for a year; and
• clarifying assumptions used at non-domestic revaluation the legislation will set these changes out to ensure that the revaluation can proceed in 2015.

The measures will be effective from 1 April 2012, subject to Northern Ireland Assembly approval of the associated primary and subordinate legislation.

The Construction Group is increasingly concerned about what appears to be a tendency of many government departments and agencies in Northern Ireland towards a blanket requirement for unlimited liability in government contracts.

The Office of Government Commerce has previously noted a similar tendency to insist on unlimited liability and it had remarked that this was likely to have had an adverse impact on competition and value for money where, for example, suppliers have refused to take part or where tender prices have been increased to compensate for the insurance costs of meeting unlimited liability.

The OGC has stated:

“Decisions on liability remain the responsibility of the individual Contracting Authority, in the light of the specific circumstances; however, in the vast majority of cases liability will be limited to some extent.”

Colm Lavery, Head of the NI Construction Group explains in detail.  Members' views and input to the discussion are welcomed.

The Department for the Environment in Northern Ireland has decided not to implement draft Policy Statement 24 (PPS 24) which deals with economic implications of a planning application. The announcement was made after an extensive public consultation. The Department determined that full account of economic implications is already included in planning decisions.

Concerns had been expressed that the implementation of draft PPS24 could compromise sustainable development, undermine existing planning policies or prioritise short term gain over longer term sustainable growth.

The Minister for the Environment, Alex Attwood MLA advised that "as no weight had been given to draft PPS 24 in the determination of planning applications, [the] decision will have no impact on planning decisions already made, nor on consideration of those applications currently in the system." The Minister also confirmed his intention to "create a planning environment which is positive to business and to reform planning to make it more fit for business."

The Northern Ireland Finance Minister Sammy Wilson MP MLA, has recently launched a consultation seeking views on issues relating to rating of commercial properties. The consultation contains proposals which the Northern Ireland Executive hopes will rebalance the business rates system during the continuing downturn by providing support for smaller businesses which will be funded by the introduction of a supplementary levy on large retail premises.

The policy initiatives to be consulted on include:

• expansion of the small business rates relief scheme (SBRR) - 20% relief would be provided to eligible premises with an NAV of £5001-£10,000. No additional relief would be provided to those small businesses who already receive SBRR (NAV of £5,000 or lower);
• an average levy on the rates bills of around 20% to be applied to those retail premises with a rateable value of £500,000 or lower. The consultation document has identified 77 stores across Northern Ireland that will be liable for the supplementary levy;
• allowing the use of shop fronts/window displays for community, artistic or non-commercial purposes so that the full occupied rate is not charged on otherwise empty properties. The entitlement to 50% empty property relief would be preserved.

It is anticipated that these changes would apply from 1 April 2012 until the end of the current spending review 31 March 2015.

The consultation document also proposes to clarify the legislation relating to valuation assumptions used at non-domestic revaluation.

If you are interested in contributing to the RICS response to the consultation please contact Nuala O'Neill (e) noneill@rics.org . The deadline for receipt of submissions is Tuesday 18 October 2011.

The Treasury is seeking views on whether reducing the rate of corporation tax in Northern Ireland will deliver a significant boost to the economy. Rebalancing the Northern Ireland Economy explores options aimed at growing the private sector and reducing reliance on the public sector. One of the most significant options involves devolving the power to vary the corporation tax rate for profits in Northern Ireland to the Executive.

Members who are interested in contributing to the RICS Northern Ireland consultation submission consultation should contact Nuala O'Neill noneill@rics.org . The closing date for receipt of submissions is 1 July 2011.

The Treasury yesterday launched the consultation Rebalancing the Northern Ireland Economy . The consultation, which lasts for three months, will explore options for raising employment, improving productivity and promoting growth in the region.

Among the possible mechanisms is a proposal to devolve the corporation tax varying rate powers to Northern Ireland. Government estimates indicate that the level of investment in Northern Ireland would be approximately 6% higher each year if the Northern Ireland corporation tax rate were cut to the same rate as the Republic of Ireland which is 12.5%.

The devolution of any tax rate varying power must satisfy EU State Aid criteria. The European Court of Justice decision on the Azores Case sets out criteria for regional differences in direct taxation which would mean that Northern Ireland's block grant would be reduced to reflect the fiscal costs of a reduction in the rate of corporation tax.

The Department of the Environment (DOE) in Northern Ireland has recently launched a number of consultations as detailed below.

The Environmental Better Regulation White Paper is aimed at exploring methods to better regulate activities that impact on the environment. The Paper sets out a range of proposals that the Department intends will reduce the regulatory burden on business, reduce the costs borne by the Department but at the same time could enhance protection of the environment. The closing date for responses is 30 September 2011.

The Department is seeking views on proposals contained in the White Paper on Enabling Legislation for National Parks . The Paper outlines the economic benefits that a national park could bring to the Northern Ireland economy; the proposed aims of a park and the criteria for identifying areas that may be designated as national parks. The paper also addresses the process for establishing a park and governance arrangements. The paper does not identify particular areas that could be designated as national parks. The consultation closes on 30 September 2011.

A consultation on Invasive Alien Species was launched this week. Proposals include the establishment of a coordinated policy and management framework that minimises the risk of invasive alien species to the economy, environment and society. Responses to the consultation are due by 30 September 2011.

The Planning Service has launched a consultation on Draft Planning Policy Statement 2 Natural Heritage. The paper seeks views on updated revised planning policy for the protection and conservation of natural heritage and accompanying supplementary planning guidance. The consultation closes 8 July 2011.

Planning Policy Statement 21 - Sustainable Development in the Countryside received approval from the Northern Ireland Executive last year. The Planning Service is now consulting on accompanying Draft Supplementary Guidance to PPS21 - Building on Tradition - A Sustainable Design Guide for Northern Ireland. The draft guidance covers with sustainable building practices and architectural design in the countryside. Responses to the Department should be submitted no later than 8 July 2011.

 If you are interested in contributing to RICS Northern Ireland's consultation responses please contact Nuala O'Neill (e) noneill@rics.org

The Environment Minister, Edwin Poots MLA, has announced changes to planning fees in Northern Ireland.

The changes will be implemented through the Planning (Fees) (Amendment) Regulations (Northern Ireland) 2011 include relating the fee charged to the scale and complexity of a development proposal. It is thought that the amendments could see the maximum fee in some cases to £250,000.00 . 

The changes will come into effect on 11 April 2011 and will amend the Planning (Fees) Regulations (Northern Ireland) by:

• removing fees for listed building consents, conservation area consents and demolition within an area of townscape or village character;
• removing certain concessionary and reduced fees;
• simplifying fees for single dwellings;
• increasing the maximum fee for housing developments, for the erection of industrial and commercial buildings, and for plant, machinery and wind farms; and
• introducing an additional fixed charge for applications requiring an environmental statement.

The Planning Bill, which transfers many planning functions to local councils, was passed by the Northern Ireland Assembly.

RICS Northern Ireland had previously contributed oral and written evidence to the Assembly's Environment Committee who scruitinised the legislation.

Significantly the transfer of planning functions will only take place after new governance arrangements for councils and an ethical standards regieme for councillors is in place. This will happen at a time determined by the next Assembly (post May 2011).

The Bill also gives local councils the responsibility for preparing local development plans.

It is hoped that the legislation will facilitate earlier community engagement and consultation with communities taking a stronger role in influencing development in their local areas.

The European Commission is currently consulting on the modernisation of rules, tools and methods of public procurement to ensure the most efficient use of public funds and to support growth and job creation.

Public procurement accounts for approximately 17% of the EU's GDP and the Commission wish to develop "flexible and user friendly tools that make transparent and competitive contract awards as easy as possible for European public authorities and their suppliers."

The RICS EU Policy and Public affairs team are in the process of developing a response to the Green Paper and would welcome contributions from RICS Northern Ireland members.

If you wish to contribute to the response please contact noneill@rics.org or njohnston@rics.org before 1 April 2011.