Northern Ireland Executive agrees 5% domestic regional rate increase for 2026/27
- Love Ballymena
- 6 hours ago
- 2 min read
The Northern Ireland Executive has agreed the Regional Rate for 2026/27, confirming a 5.0% increase for domestic properties and a 3.0% increase for non-domestic properties.
The decision means the domestic regional rate element of the average household bill will rise by 63p per week.
The regional rate forms part of the overall rates bill and is used to fund public services across Northern Ireland. The Executive confirmed it has taken the same approach as 2025/26 in setting the new rates.
Over £900 million to be raised for public services
Finance Minister John O’Dowd said the rates system remains a critical source of funding.
“Rates currently raise over £1.6billion annually providing vital funding for our hospitals, childcare, schools, and other essential council services that support our communities. The regional rate agreed today will raise just over £900million for the Executive for the 2026/27 year.”
He added that the Executive sought to balance revenue needs with cost-of-living pressures.
“With many households still feeling the pressure of rising living costs, and businesses facing increased costs, the Executive has aimed to strike a balance between raising the revenue required to support essential public services and protecting workers, families and businesses from unnecessary financial strain.”
Impact on households and businesses
The Executive’s decision keeps the domestic uplift at the same level as last year, with the average increase equating to 63p per week.
The Minister said:
“The Executive’s decision to keep the domestic uplift at the same level as last year is a recognition of the cost of living pressures felt by households. Keeping the non-domestic rate below the current rate of inflation reflects the pressures facing local businesses and their vital role in supporting jobs in our local communities and driving local growth.”
At the time of the Executive’s decision, inflation stood at 3.4%, based on the December Consumer Price Index (CPI) figure published on 21 January 2026.
The Minister also highlighted existing support measures.
“Domestic ratepayers have access to a targeted, means-tested package of help that serves to provide support for low-income households. 75% of non-domestic properties benefit from rate relief, offering around a quarter of a billion pounds in much-needed support.”
Additional £47 million in funding power
The proposed uplifts are due to be debated in the Assembly in March.
“These uplifts, to be debated in the Assembly in March, would generate an additional £47million of funding power during 2026/27, compared to Budget 2025-26, for our vital public services that our citizens and businesses rely on,” Mr O’Dowd said.
Rates raise more than £1.6 billion annually, with Reinvestment and Reform Initiative (RRI) principal repayments having a first call on the Regional Rates. A forecast repayment of £130.5 million is due in 2026-27, leaving £770 million available to fund wider public services.
Property valuations explained
The Department of Finance noted that the average capital value of a domestic property differs from market value. The valuations used in the Domestic Valuation List are based on property values as of 1 January 2005. The £123,000 figure represents the average capital value listed.
A copy of the Minister’s Written Ministerial Statement is available at: