Major Review Of NI Business Rates Launched

The Department of Finance has today announced a review of the non-domestic rating system in Northern Ireland.

Rates are the property tax that businesses pay for their premises.

Sue Gray, Permanent Secretary at the Department of Finance said: "In recent years significant changes have taken place in our high streets and town centres. It is critical from a business perspective, as well as a government funding perspective, that our rating system is capable of responding to this wider process of change. That's why today I am announcing a full and comprehensive review of business rates.

"We must create a rating system which generates the funding our public services need while supporting businesses in all sector and enabling economic growth right across Northern Ireland.

"In an environment where we are working without Ministers there are limitations to what we can do by way of policy change. But we need to be ready with updated advice for incoming Ministers for their return to office. This fundamental review is therefore a critical part of this process."

The Northern Ireland Retail Consortium has welcomed the review, commenting that it is born out of Ms Gray's drive for positive change.

Director at NIRC Aodhán Connolly said: "The fact that retail is 12% of the economy and pays a quarter of all business rates is simply not sustainable especially given the seismic structural changes going on in the industry. We have some of the highest business rates in Europe and they are a disincentive to investing in Northern Ireland.

"We are already playing catch up to the rest of the UK on business rates reform where our businesses pay 12p in the pound more than the UK average. This review must look at all aspects of the system. There must be equity in any new system that allows for a widening of the tax base and an audit of the plethora of exemptions some of which have been in place since the 1930s.

"If we don't get business rates right, we risk further shop closures which will not only cost jobs but leave a gaping hole in NI finances."

Part of the review will see a joint Innovation Lab held at the beginning of July with other Government Departments. The Lab event will gather leading policy experts in the field of urban regeneration, taxation and the high street to capture their perspectives, ideas and options on a range of issues affecting town centre regeneration, including business rates. It will provide an open space for an in-depth conversation about the future of non-domestic rates.

Rates are a devolved matter, meaning a Stormont minister will need to be in place to implement any recommendations that emerge.



(JG/CM)