Rates cap 'only with devolution'

The new rating system is based on a valuation of houses

Domestic rates could be capped at house valuations of £500,000 but only if devolution is restored, NIO minister David Hanson has said.

He was speaking after a House of Lords debate on the system, which is due to come in next April.

Mr Hanson is also proposing a 50% improvement in relief for pensioners and people on low incomes.

He said it would take £1m out of government spending, but this would be for devolved politicians to decide.

"We've discussed and come to an agreement with the parties on the changes that they wish to see," he said.

They have to be back in power in order to face the consequences David Hanson NIO minister

"The changes that they wish to see, if they get back into government, are a cap and a better deal for pensioners.

"I'm actually putting in place what the local devolved parties want, but the key to it is they have to be back in power in order to face the consequences of that and to see it through.

"That is why we won't do it until such time as they've signed up."

Fair Rates Campaign spokesperson Anne Monaghan said on Tuesday: "We argued consistently that this was a decision which should be taken by our local politicians.

"We will now be lobbying them over the next three days that any agreement on St Andrews is conditional on a deferment of the introduction of the new rates system."

Every house in Northern Ireland was surveyed in order to calculate rateable values, based on the estimated worth of the property at the start of January 2005.

Therefore, the most expensive houses have seen the largest proposed increase in rates.

The last valuations were made in the mid-1970s when a house was valued according to the ability for it to be rented.