BUSINESS groups in the north have broadly welcomed the start of a process to review commercial rates, which includes seeking views on alternative forms of taxation as either replacements or supplements to the existing rating system.
A 12-week consultation period was opened by Finance Minister Arlene Foster, during which stakeholders will be invited to provide input on the future direction of business rates.
The review is timely given that it follows the non domestic revaluation which took effect in April, and the overall objective of the latest consultation is to ensure the region has the best and most acceptable system of raising revenue to help fund public services in the future.
Federation of Small Businesses regional chairman Wilfred Mitchell said that, for its members, business rates are one of the major overheads after staff costs and rent.
"Proportionately, small businesses pay more in rates than larger businesses and therefore, as it stands, the system is unfair," he said.
"FSB Northern Ireland believes that there needs to be a wholesale rethink, not only on who pays what and how much is paid, but also on non-domestic rates as a concept.”
Northern Ireland Independent Retail Trade Association (NIIRTA) chief executive Glyn Roberts has long been calling for a fundamental review of business rates, and he welcomed Ms Foster's announcement.
“For independent retailers and small business owners, business rates is the key issue for their business and NIIRTA will be proposing new ideas on how to make rates fair, cost effective and fit for purpose in a rapidly changing economy.
“In our recently published Fifteen Point Plan we outline the need to extend the small business rate relief scheme from £15,000 to £18,000, reform rates to give greater flexibility with economic cycles, carry out rates revaluations every three years, introduce a rural retail rate relief scheme and provide exemptions for small traders investing in expansion, allowing them to offset capital investment against their rates bills.”
The Minister added: “This is not about raising more money – it is about how we raise a set amount of revenue for public services each year for councils as well as departments.
"Non domestic rating is a difficult and important subject for us all. Any changes that are made to reduce what some groups or sectors pay, will result in others paying more and I am acutely aware that there will be no single solution that will please everyone. However, we need to make sure the distribution system is as good as it can be.
“I encourage interested parties to engage with the consultation process so that we can consider ideas to improve the current system and any alternatives that might present themselves.”
