BUSINESS groups across Northern Ireland have broadly welcomed the decision to freeze the regional non-domestic rate for the 2023/24 financial year.
The Secretary of State Chris Heaton-Harris announced a 6 per cent increase in the regional domestic rate on Thursday evening.
But he confirmed that the regional non-domestic rate, paid by businesses, will remain frozen for the coming financial year.
Rates bills are calculated by combining the regional rate with the rate struck by councils and multiplying it by the rateable value of a property.
All 11 councils around the north have announced increases in domestic and non-domestic rates, meaning householders and businesses will pay more in 2023/24.
The average increase in the domestic rate is 6.67 per cent, with Belfast City Council striking the highest increase for households (7.99 per cent).
The average hike for businesses is higher at 7.29 per cent. Newry, Mourne and Down District Council has opted for the highest increase (11.53 per cent).
READ MORE: Chris Heaton-Harris sets 6% domestic rate increase in Northern Ireland
READ MORE: Councils' non-domestic rate hikes "hugely disappointing" says retail director
But the decision to freeze the regional rate for businesses has cushioned the blow.
The chief executive of Hospitality Ulster, Colin Neill, said the freeze was welcome news at a time when businesses, particularly those in his sector, are feeling the impact of cost pressures.
“We have fought hard and made representations to the Secretary of State to do more for business and for our industry and we are glad to see that he has heeded the warning signs and made this decision to freeze the non-domestic regional rate for the next financial year.”
The director of the Northern Ireland Retail Consortium, Neil Johnston, said retailers will also be relieved by the decision.
“Freezing the business rate means retailers – amongst Northern Ireland’s biggest private sector employers - avoid a significant tax hike at a time when they are grappling with spiralling costs and an uncertain outlook.
“This is good news for retailers, for hard-pressed retail destinations, and for shoppers as it will ease upwards pressure on store prices.”
Chair of the Federation of Small Businesses (FSB), Alan Lowry, said: “In choosing to freeze the non-domestic regional rate, the Secretary of State has removed one of the threats that has been hanging over businesses.”
But he called on the Department of Finance to match the support announced for England and Wales, where businesses in the retail, hospitality, tourism and leisure sectors will benefit from a 75 per cent discount in 2023/24.
“Our members in these sectors are telling us about the pressures they are facing and cannot see how officials could decide that the pressure is somehow less in Northern Ireland than that in England or Wales,” said Mr Lowry.
“SMEs provide the majority of employment in Northern Ireland, and these sectors are a key part of our tourism offering which brings in wealth from elsewhere, so we must see them prioritised for similar support.”
