A coalition of influential business groups in the north are demanding similar treatment to other parts of the UK when it comes to rates relief.
In her Budget statement on October 30, Chancellor Rachel Reeves hiked employers’ national insurance payments and increased the living wage, and also announced a 40% relief on business rates for the retail, hospitality and leisure industry in 2025/26, up to a cap of £110,000 per business, which she justified by saying the previous government had “created a cliff edge next year as temporary reliefs end”.
Retail properties in Britain have enjoyed business rates relief since 2020, currently benefitting from a 75% discount capped at £110,000 per business, which is due to expire next April 2025.
But the reliefs don’t apply in Northern Ireland, with businesses in the retail, hospitality and leisure sectors arguing that they pay a disproportionate share of business taxes relative to their economic contribution.
Now 23 business organisations, chief executives, chambers of commerce and business improvement districts (BIDs), covering every village, town and city, have written an open letter to all MLAs and local MPs demanding parity for high street firms here.
They have also made urgent requests to meet the First and deputy First Ministers, finance and economy ministers, and secretary of state Hillary Benn, to discuss the worsening cost of business crisis.
Its letter says: “We represent members and workers who are contributing billions of pounds every year to the local economy.
“October’s Budget has increased the cost of doing business for local high street firms to beyond crisis point, with thousands of businesses facing an uncertain future, scaling up plans cancelled, and additional employment put on hold.
“Our members are struggling to pay the highest business rates in the UK, and the decision by the chancellor to add to this burden by increasing employers’ national insurance will have a negative impact on local jobs, the viability of small businesses and restrict the growth of our economy.
“This hike along with a 6.7% increase in the Living Wage is a huge cost for our members to absorb.”
On Ms Reeves’ 40% rates relief scheme for independent retailers and other high street businesses in England, the letter signatories have called on Stormont finance minister Caoimhe Archibald to use the Barnett consequential of the chancellor’s scheme to provide appropriate rates relief for high street businesses in Northern Ireland.
They said: “This will offset the national insurance increase and allow high street businesses to reinvest more of their money to create more jobs and boost our economy.
“Previously in England small businesses received a 75% reduction in their 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, small businesses here didn’t receive a single penny of reduction in their rates bills, with the money being subsumed elsewhere in the Stormont budget.”
Among those who have signed the letter are the chief executives of Retail NI, Hospitality Ulster, Food NI, and NI Food to Go Association; BIDs in Cathedral Quarter, Coleraine, Strabane, Newry and Enniskillen; and Chambers of Commerce in Antrim, Ballycastle, Ballymena, Ballymoney, Banbridge, Bangor, Belfast, Causeway, Derry, Larne, Lisburn, Newry, Newtownards and Omagh.