Executive increases regional rate by 4% - backing a proposal by the finance minister

It means that the part of the bill set by Stormont will go up roughly in line with inflation.

It comes amid a request from the UK Government for Stormont to raise an additional £113 million of its own revenues in the coming financial year.

Ms Archibald said: “The Executive’s recommendation to the Assembly should be seen as a clear demonstration that we recognise the role we have to play to ensure our finances are on a more sustainable footing.

“And working together as an executive we will be better placed to meet the challenges of delivering high quality public services.”

Deputy First Minister Emma Little Pengelly said: “We know that there are a huge number of families in Northern Ireland that are under significant financial pressure”.

“That is why we have been working so hard, including with the Treasury and the UK government, to make representations on this. And that’s why we do believe that today’s decision will keep costs to families at an absolute minimum. It means that on a domestic property with an average capital value of £123,000 they would pay just under £2 more a month. We understand absolutely that families are under pressure, families are concerned, there’s also local government rates increases and this will mean that there is a very small and minimal increase in terms of what they have to pay.

“For businesses with a rateable value of £50,000 it will mean an additional £10.73 per week. I want to reassure households and businesses that the existing £350 million of rates support that is in place will still be there to help them in the year ahead.

The 4% increase is significantly less than the increase passed by most councils in Northern Ireland, who have already set their part of the property tax.

Lisburn and Castlereagh was the only council with a rate increase below 4% – with Mid and East Antrim’s tariff going up almost 10% for homes and 12% for businesses.

Rates account for 5% of Stormont’s budget and 75% of council spending.