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What do Rates pay for?

Including the issue of householders paying for water

Money for public services in Northern Ireland comes from a combination of our share of the UK’s central tax revenues and local revenues. Our local revenue is collected through the rates, which are split into two parts, the regional rate and the district rate. In 2008/2009, as in previous years, the regional rate is used to help pay for our regional services such as the health service, education and water (including sewerage).

As specific water bills are to be issued to all households for the first time in April 2009, the domestic regional rate for 2009/2010 will be reduced by an amount which equates to an average of £160 per rate paying household. This is in recognition of the contribution that the revenue from the regional rate currently makes toward water services and addresses the concerns of ratepayers that they should not be asked to pay twice for water and sewerage services. Further details will be published in due course.

The district rate is struck independently by your local district council. District rates pay for services provided by councils such as leisure services, refuse collections, building control and environmental health.

Legislation is needed each year to set the regional rates. Under devolution this means that the Order setting out the levels of rates to be applied for both domestic and non-domestic rate payers from 1 April 2008, requires the approval of the Northern Ireland Assembly.