25 Nov 2025

Top 20 Credible Revenue-Raising Options for Northern Ireland (Ranked by Real-World Feasibility & Yield)

Northern Ireland faces a structural fiscal gap of £1–2 billion per year, leaving the Executive with two choices: raise more revenue or cut already thin public services. Here are the 20 most credible, defensible and realistic revenue-raising options, ranked from highest yield & highest likelihood, to niche long-term ideas.

1. Domestic Water & Sewerage Charges (Highest Yield)

NI is the only region in the UK without domestic water bills.
Estimated yield: £350–£450m/yr
Why credible: Already consulted on; considered unavoidable if finances worsen.

2. Reform of Domestic Rates (Property Tax)

Increase rates on higher-value homes, reduce discounts, adjust banding.
Estimated yield: £120–£200m/yr
Why credible: Administratively easy with existing Land & Property Services.

3. Business Rates Reform / Removal of Reliefs

Review vacant property relief, industrial derating, student housing relief.
Estimated yield: £100–£150m/yr
Why credible: Immediate changes possible; already under Executive review.

4. NHS/Health Charges (Prescription Reintroduction, Domiciliary Care Fees)

NI abolished prescription charges in 2010; reinstating them has been proposed multiple times.
Estimated yield: £40–£60m/yr
Credibility: Politically difficult but financially tempting.

5. Hospital Car Park Charges

Reversal of the 2022 legislation banning charges.
Estimated yield: £10–£15m/yr
Credibility: Widely used across UK; considered low-hanging fruit.

6. Increased University Tuition Fees

Align NI with GB tuition costs.
Estimated yield: £60–£90m/yr
Credibility: Politically sensitive but consistently re-raised by DfE.

7. Tolling of New Infrastructure (e.g., Strangford Lough Bridge)

User-pays model for new fixed links or major roads.
Estimated yield: £10–£40m/yr depending on scheme
Credibility: Highly defensible on major projects with clear time savings.

8. Environmental Levies (Drainage, Flood Defence, Waste Charges)

Charges linked to land drainage, surface water, or heavy users.
Estimated yield: £30–£60m/yr
Credibility: Already embedded in consultations for NI Water reform.

9. Review and Removal of “Super-Parity” Subsidies

NI provides more generous support than GB for several schemes.
Estimated yield: £600–£700m/yr (total value of super-parity elements)
Credibility: Reforming even 10–20% is politically realistic.

10. Higher Planning, Licensing & Permit Fees

Full-cost recovery instead of subsidy.
Estimated yield: £5–£15m/yr
Credibility: No major political cost.

11. Charging for Septic Tank Desludging

NI Water currently subsidises domestic tanks.
Estimated yield: £5–£10m/yr
Credibility: On the table within water reforms.

12. Property-Based Infrastructure Levy (Land Value or Site Value Tax)

Annual levy on valuable land or second homes.
Estimated yield: £20–£50m/yr
Credibility: Medium-term; used elsewhere but requires legislation.

13. Public Asset Sales / Long Leases

Land, buildings, vacant property portfolio.
Estimated one-off yield: £100–£300m
Credibility: Used before; non-recurring.

14. Commuter Parking Levies in Urban Centres

Workplace parking charges (model from Nottingham).
Estimated yield: £5–£12m/yr
Credibility: Belfast City Council has analysed the concept previously.

15. Tourism Levies (Hotel Bed Taxes)

Used in Dublin, Barcelona, Amsterdam, etc.
Estimated yield: £10–£20m/yr
Credibility: Requires cooperation with councils.

16. Local Green Energy Levy / Carbon Offset Levies

Charges for high-energy industrial users; revenue ring-fenced.
Estimated yield: £5–£10m/yr
Credibility: Works well in devolved regions.

17. Congestion Charging in Belfast

Only feasible if paired with improved public transport.
Estimated yield: £10–£25m/yr
Credibility: Medium-term; politically difficult.

18. Fuel Duty Variation (If Devolved)

Would require additional devolution; risk of cross-border leakage.
Estimated yield: £10–£20m/yr baseline
Credibility: Legislatively very complex.

19. Corporation Tax Variation (If Devolved & Affordable)

Lowering corporation tax reduces revenue; raising it increases revenue but risk to investment.
Yield: Uncertain
Credibility: Low, given UK Treasury constraints.

20. Growth-Based Revenue Expansion (Long-Term Structural)

Not a tax – but increasing employment & productivity expands tax base.
Yield: largest long-term benefit
Credibility: Requires multi-year strategy and political stability.

Summary Table: NI’s Best Revenue Options at a Glance

Rank	Revenue Option	Est. Yield	Notes
1	Water & Sewerage Charges	£350–£450m	Highest yield; already under consultation
2	Domestic Rates Reform	£120–£200m	Easy to implement
3	Business Rates Reform	£100–£150m	Strong fiscal logic
4	Health Charges	£40–£60m	Political difficulty
5	Hospital Car Parks	£10–£15m	Reversal of ban
6	University Fees	£60–£90m	DfE-supported option
7	Infrastructure Tolls	£10–£40m	Strong for Strangford Lough case
8	Environmental Levies	£30–£60m	DfI/DfI Water consistent
9	Super-Parity Reforms	Up to £700m	Even partial reform saves big
10	Admin Fees Increase	£5–£15m	Low impact
11	Septic Tank Charges	£5–£10m	Fits NI Water changes
12	Land/Property Levy	£20–£50m	Medium-term
13	Asset Sales	£100–£300m	One-off
14	Workplace Parking Levy	£5–£12m	Belfast-suited
15	Tourism Tax	£10–£20m	Worldwide model
16	Green Energy Levy	£5–£10m	Climate-aligned
17	Congestion Charge	£10–£25m	Requires investment
18	Fuel Duty Variation	~£15m	Legislative hurdles
19	Corporation Tax Variation	Uncertain	Low feasibility
20	Economic Growth	N/A	Most important long-term

Northern Ireland has more revenue-raising levers than most people realise. The challenge isn’t identifying options — it’s choosing which combination delivers sustainability without damaging growth or living standards. The evidence shows that a balanced mix of water charges, rates reform, business rate adjustments, and targeted levies could close most of the fiscal gap without drastic cuts.