The Department of Finance has officially launched a public consultation into business rates in Northern Ireland.
The process, which will involve a series of events across the north over the next two months, follows permanent secretary Sue Gray’s announcement of a full and comprehensive review in May.
Business bodies have labelled the current system “broken and antiquated”.
Launching the public consultation at a rates conference in Belfast yesterday, Ms Gray said her department had worked with experts in tax, urban regeneration and the high street over the past four months to inform the scope of the consultation document.
She has called for business rate payers to engage with the process, which runs until November 11.
“This review is about looking at the current position and making recommendations to ensure that our business rates system is effective and fair while raising the funds needed to support Northern Ireland’s key services,” said the permanent secretary.
The current system has been labelled “not fit for purpose” by the director of the Northern Ireland Retail Consortium, Aodhán Connolly.
“The situation where retail is less than 12% of the economy but pays a quarter of all business rates receipts is simply untenable and it is a key factor in the challenging times in which we find ourselves.
“We have the heaviest business rates burden in the UK by over 12p in the pound so if we are to compete on a level playing field with our neighbours to the East and South, we need this consultation to lead to seismic change which will invigorate our high streets and lead to retail reinvention and prevent retail Armageddon.”
Welcoming Sue Gray’s announcement, chief executive of Retail NI, Glyn Roberts said: “Fixing business rates is Retail NI’s top priority given that our members pay the highest rates in the UK.”
Proposals for the rates system featured prominently in the Trade NI report presented to MPs in Westminster last Wednesday.
“We outlined proposals for a green rate relief scheme to incentivise businesses to invest in green technology, enhancing the current empty premises rate relief scheme, a capital allowance scheme and making it easier to access the rates hardship scheme,” said Mr Roberts.
“We hope this consultation will lead to a publication of an action plan to ensure that the next Finance Minister has options to hit the ground running.”
The consultation has also been welcomed by the hospitality trade. Chief executive of Hospitality Ulster, Colin Neill said the current system needs to change.
“The way business rates are calculated for the hospitality sector are completely out of kilter with other businesses and are a significant financial burden on top of ever increasing costs that are squeezing margins and threatening to put many out of business.
“At the last UK Budget, the Chancellor gave hospitality businesses among others a third off their rate bills in England, however this didn’t apply to Northern Ireland. We continue to pay the highest business rates in the UK and are getting very little in terms of support. We want nothing less than real and meaningful change for our members here.”
