WITH 75,000 businesses in Northern Ireland receiving their draft valuation of their business rates last week, it was a stark reminder of the need for radical reform of our broken, antiquated, and expensive rating system.
It is unacceptable and a drain on our local economy that businesses here continue to pay the most expensive business rates anywhere in the UK.
In England, small businesses are getting a 75 per cent reduction in their business rates to assist with the cost of doing business crisis.
Despite the UK Government giving Northern Ireland this funding as part of the Barnett consequential, local small businesses are unlikely to get a single penny of reduction in their rates bills, with the money going instead into the Stormont black hole.
Why should independent retailers and small businesses in Northern Ireland be so unfairly treated in comparison to their English counterparts? Unfortunately it doesn’t stop there - worse is still to come.
With the regional rate likely to be set by the Secretary of State and the local rate to be struck by our 11 local councils, we have real concerns that we could see inflation busting rises that will cripple many local businesses.
Retail NI and a consortium of 16 trade bodies and chambers of commerce wrote to all 11 council chief executives, urging them not to go down this road. We urge all local councillors to listen to these genuine concerns.
We are at a critical juncture as a perfect storm of factors is causing devastation for the retail and hospitality sectors. It could see thousands of businesses threatened over the next few months if no action is taken.
Out of control energy bill increases, labour shortages, inflation, and falling consumer confidence are all risking the business climate of Northern Ireland. Fears that many will simply go under in the next months without government assistance are keenly felt and we cannot continue on this path of destruction any longer.
With this perfect storm, many Retail NI members are worried about pushing customers away by having to raise prices to keep pace with the rising costs.
Sadly, the bad news just keeps coming, with the UK government’s inadequate, poorly targeted and ultimately pointless new energy support package for businesses. Local shops and many other businesses face a massive hike in energy costs from April.
The government is currently reducing business energy bills by effectively controlling the wholesale price, the main component of businesses’ energy bills. But they will be moving away from this model in April and instead providing a subsidy to electricity bills of 1.96p per kilowatt hour for all business customers paying over a minimum rate.
With the worst economic crisis in memory alongside our health service on its knees, it's an absolute scandal that we still have no Executive in place nor a plan to address this cost of doing business crisis.
Let’s be very clear, a restored Executive will be no silver bullet. But surely having ministers and their departments pulling out all the stops to support struggling families and small businesses would be better than what we have now?
:: Glyn Roberts is chief executive of Retail NI
