NI Executive must act to save high streets – NIRC
Retailers are warning of the risks and consequences for Northern Ireland’s high streets from inaction on business rates as other parts of the UK press ahead with permanent rates reductions for shops from April.
Both the UK and Welsh governments have recognised retailers pay a disproportionate amount in business rates and are introducing permanent rates reductions for shops from April 2026.
The Chancellor of the Exchequer is expected to confirm in her UK Budget on Wednesday 26th November, the size of reduction in the business rate that will apply to retailers in England in the coming financial year. The Welsh Government has also announced it will reduce rates for shops from April.
The Northern Ireland Retail Consortium is calling on policymakers to ensure all retailers in Northern Ireland also benefit from a permanent reduction in business rates. The NIRC is warning that a less competitive business rates regime here would be bad for retailers but also for Northern Ireland’s retail destinations.
Despite some welcome modest reforms to the rating system by the Finance Minister, the overall level of business rates remains too onerous. Business rates are set by the combination of the regional rate set by the Executive and local element set by each of the 11 councils. In recent years many councils have imposed significant increases in business rates well in excess of inflation and the regional rate has also continued to go up.
Neil Johnston, Director of the Northern Ireland Retail Consortium said: “Governments in England and Wales acknowledge the rates burden on retail is disproportionately high and are bringing in permanent rates reductions for the industry from April.
“Unless we see action to reduce business rates for all retailers in Northern Ireland then stores here risk being put at a further competitive disadvantage and potentially materially so. It’s not in the interest of Northern Ireland’s economy, nor our high streets and retail destinations, for retail businesses to be incentivised to invest in England and Wales over towns and cities in Northern Ireland.
“The retail industry and the Executive have a shared goal in boosting Northern Ireland’s high streets. Following closely on the UK budget it’s imperative the Finance Minister sets out in his draft Budget, a concrete three-year plan to permanently reduce the business rate applied to retailers of all sizes.
“Failure to do so could see consequences for commercial investment and for the condition of Northern Ireland’s town centres and other retail hubs, as destinations in GB become considerably more attractive and cost-effective locations to trade and invest in.
“Retail trading is tough right now. Continued investment is essential to keep shops viable and attractive to customers. If it becomes materially more expensive to run shops in Northern Ireland than elsewhere that’s likely to shift investment to other areas. It’s up to Executive and the Assembly to ensure Northern Ireland remains competitive.”
