Community
The Riddle of Single Occupancy Rates
Rates reform has seemingly been kicked into the long grass, despite admitted issues with the current system.
Treasury Minister Dr Alex Allinson has said it would cost approximately £2.9m if single occupancy households received a reduction in their rates.
In the UK, people who live by themselves receive a 25% reduction in their council tax, which reflect the lower demand they place on services, as well adding some fairness into system.
However, on the Isle of Man, whether you live by yourself or in a house of 12, the amount charged in rates by local authorities is based on the rateable value, essentially a property with a large rateable value will pay more than one with a smaller rateable value.
The matter was reflected in our Jean-jee red ennagh series when a woman living alone highlighted how as a single person her bills aren’t reflected, leading to higher percentage of their incomes going into bills and rates.
Responding to a written question from Speaker Juan Watterson about what the impact would be on other ratepayers if a 25% discount was offered on island, Dr Allinson said that based on 2021 census figures, there are 12,158 single occupancy houses.
He added: ‘25% of the approximate domestic rate; based on 12,158 single occupants, would be £2,984,805. The estimated impact on ratepayers with more than one occupant in the household would be an average of an extra £120 per year.’
He did caveat this by noting that the average extra cost is based on the rates figures as whole and doesn’t necessarily reflect individual local authority rates.
The lack of fairness in the system was highlighted earlier this year by Douglas South MHK Sarah Maltby as ‘one of the biggest unfairnesses of our current rating system’.
However, it would appear that the gov’s appetite for reform is not a strong one.
