Understanding Northern Ireland’s New Regional Rates for 2025

The Department of Finance in Northern Ireland has introduced an important update for homeowners and businesses: the Rates (Regional Rates) Order 2025. This legislation sets the new regional rates that determine how much you’ll pay in rates for the upcoming financial year, ending on March 31, 2026.

What’s Changing?

Every year, Northern Ireland sets regional rates that help fund essential services provided by various departments. For the 2025/26 period, the rates are as follows:

• Domestic Properties: 0.5294 pence in the pound.
• Non-Domestic Properties: 29.89 pence in the pound.

These rates are crucial for calculating the bills that both homeowners and businesses will receive. Essentially, for every pound of the property's assessed value, these rates determine the amount owed in regional rates.

Why Does This Matter?

The regional rates directly impact your annual rates bill, a key part of how public services—from infrastructure to education—are financed in Northern Ireland. While the rates apply universally across all properties, they are crucial for maintaining the quality and availability of these services.

Consultation and Impact

Interestingly, the Department of Finance did not conduct a public consultation for this Order. This is standard practice for such annual financial measures, which are essentially technical adjustments within the taxation system. Furthermore, there are no anticipated equality impacts, as the rates are applied uniformly across all properties.

Financial Implications

The primary goal is to ensure sufficient funding for public expenditures throughout the year. Setting these rates is a critical step in the financial cycle, ensuring that Northern Ireland's departments have the necessary resources to operate effectively.

Legal Compatibility

The Order has been reviewed for compatibility with existing legislation, specifically section 24 of the Northern Ireland Act 1998, and has been deemed compliant.

In summary, while the Rates (Regional Rates) Order 2025 may seem like a routine update, it plays a vital role in determining how much every property owner in Northern Ireland contributes to the funding of public services. Understanding these rates is essential for budgeting and financial planning for the year ahead.