AQW 1326/17-22


Ms Paula Bradshaw
Alliance Party
South Belfast


Tabled Date: 31/01/2020
Answered On Date: 15/02/2020
Priority Written: No


Question:
To ask the Minister of Finance how much was lost to the Executive in unpaid (i) domestic; and (ii) non-domestic rates in each of the last four financial years.


Answer:
The amount of unpaid domestic and non-domestic rates for the last four financial years is shown in the table below.
Financial Year
Domestic
Non-Domestic
Total
2018/19
£63,014,612
£61,726,043
£124,740,655
2017/18
£63,926,027
£62,329,166
£126,255,193
2016/17
£67,119,757
£64,509,557
£131,629,314
2015/16
£72,540,057
£70,908,982
£143,449,038
The table above shows the Year End (ie as at 31st March) debt position for domestic and non-domestic properties in each of the last four financial years, against annual collection challenges of over £1.3 billion. The figures include the regional and district element of the rate assessments.
LPS has reduced the Year End debt position over this last number of years, and the 2019 debt is the lowest it has been in a decade. It is important to note that Year End debt is carried forward into the following rating year and around 50% of this debt includes balances being paid through extended payment arrangements and/or subject to legal recovery proceedings.
Debt arises because ratepayers have not paid their rate bills. We must also accept that we are in a challenging economic environment and many people are struggling to pay their bills. LPS continues to see large numbers of individuals and businesses facing bankruptcy, administration and liquidation.
LPS will engage with ratepayers allowing them to pay smaller amounts, over a longer period of time. However this inevitably increases the level of rating debt at the end of the rating year.
While LPS will make efforts to support those who are struggling to pay, they must, and will, rigorously pursue those who don’t pay. Where ratepayers fail to pay or do not enter into payment arrangements or break those arrangements, LPS will take Court action and seek to recover the debt through the Enforcement of Judgements Office or will instigate bankruptcy proceedings.