Finance Minister Meets Local Traders In Newcastle

Finance Minister Sammy Wilson today met with local traders from Newcastle and participated in a round table discussion on business rates.

During the visit, hosted by the Northern Ireland Independent Retail Trade Association and the Newcastle Chamber of Commerce, the Minister highlighted the Executive’s ongoing support for town and city centres.

Mr Wilson said: "I welcome the opportunity to hear the views of traders and the concerns that many have, both here and in other cities and towns across Northern Ireland. While the downturn has impacted on all sectors, some have fared better than others and I know that small businesses in particular are struggling.

"The Executive has recognised the difficulty that businesses have endured and have agreed that rates should be held at the rate of inflation, through to the 2014/15 rating year, providing certainty and stability for ratepayers in terms of financial planning. This builds on the regional rate freeze over the last four years, keeping rate increases as low as possible and means that, by 2015, rates will have been frozen in real terms in Northern Ireland for seven straight years.

"The Small Business Rate Relief scheme was expanded on 1 April. A total of almost 1,040 businesses in the Down District Council area are now benefitting following the expansion, with an average award of around £520 a year. This scheme provides tangible benefits to small businesses and in turn will help our high streets, who have been adversely affected by the downturn and continue to struggle during these difficult economic times."

The Minister outlined the steps taken by his Department to deal with the impact of empty shops in town centres. He said: "A one year empty shops rates concession is available this year. This allows 50% empty property relief to continue for a year on long term empty retail premises. This will apply where the property becomes occupied in 2012/13 and has been empty for 12 months or more. Relief will then be awarded for up to 12 months, helping to revitalise our town centres and core shopping areas. This is in addition to occupied rates not being charged on non-commercial window displays in empty retail premises."

The Minister also took the opportunity to explain what the planned 2015 non-domestic revaluation exercise will mean for business ratepayers. He said: "The revaluation exercise is about restoring fairness in how the business rates burden is shared. It will redistribute the rating burden according to how rental values have changed since 2001, not in the last couple of years. More generally, many people are under the mistaken impression that reductions in rents since the downturn would lead to corresponding reductions in rate bills. This is not the case. Even when values decline the Executive and district councils still need to raise the same amount of money to pay for public services."

(CD/GK)