Business

Rates review 'a step forward' say business groups

Announcing the rates review at a Retail NI/DWF local government conference at Titanic Belfast are (from left) Colin Neill (Hospitality Ulster), Julie Galbraith (DWF Partner), Sue Gray (Department of Finance permanent secretary) and Glyn Roberts (Retail NI)
Announcing the rates review at a Retail NI/DWF local government conference at Titanic Belfast are (from left) Colin Neill (Hospitality Ulster), Julie Galbraith (DWF Partner), Sue Gray (Department of Finance permanent secretary) and Glyn Roberts (Retail NI Announcing the rates review at a Retail NI/DWF local government conference at Titanic Belfast are (from left) Colin Neill (Hospitality Ulster), Julie Galbraith (DWF Partner), Sue Gray (Department of Finance permanent secretary) and Glyn Roberts (Retail NI)

A PROPOSED fundamental review of commercial rates in the north, confirmed by the Department of Finance, has been heralded as a "significant and welcome development" by business groups including Retail NI and Hospitality Ulster.

Both have lobbied for the review for a number of years and say they are pleased their joint call has been heard and underlines that when business organisations work in partnership, they get results.

"This review provides us with a roadmap for radical change to an antiquated and not fit-for-purpose system of business rates, which is a major burden for our members. Time and time again our members tell us that rates is their number one concern," the groups' chief executives Glyn Roberts and Colin Neill said.

"It's a scandal that Northern Ireland has now the highest business rates in the UK, which is restricting the growth of our retail, hospitality and SME sectors.

"We are not saying fixing and indeed lowering business rates is a silver bullet to address the problems of our high streets, but it is a significant start."

In the last UK Budget, the Chancellor gave independent retailers and hospitality businesses in England a third off their rate bills, but their Northern Ireland counterparts didn’t receive this reduction,and when the Secretary of State set the regional rate bills actually rose by 2 per cent.

Both Retail NI and Hospitality Ulster outlined a targeted approach to the current small business rate relief scheme which would ensure the mainstays of the high street, as independent retail and hospitality would receive an enhanced rate relief of up to 40 per cent.

The proposals were supported by more than 30 local business organisations and by the last Finance Minister, but never progressed as the Assembly fell soon after.

Other priorities from the two groups include:

• Enhancing the existing empty premises rate relief scheme to support the next generation of retail entrepreneurs as they start their businesses;

• Revamping the rates hardship fund to be more accessible for businesses, particularly those who have lost trade because of public realm upgrades and other disruption;

• A capital allowance rates scheme, which gives relief to those small businesses who want to grow their business, employ more staff, and invest in Northern Ireland; and

• A green rate relief scheme for businesses which invest in green and carbon neutral technology

Roberts and Neill added: "We want to see this rates review provide an option paper for the next Finance Minister to hit the ground running with a radical plan for change. It's vital the current political talks reach a successful conclusion so we can see real delivery of a 21st century rating system."