Belfast shop vacancy rates revealed as one of highest as Minister outlines next steps in business support plan
Belfast has been ranked as one of the top 10 UK cities with the highest number of vacant high street shops, sitting in fifth place.
Over half (56%) of Belfast residents visit the high street less often than they did 12 months ago, it has been revealed.
The findings from a Capital on Tap survey, come as the Northern Ireland Finance Minister announced plans to introduce targeted rate relief to help businesses expand and bring vacant properties back into use.
The British High Street Report by Capital on Tap shows that understanding the high street landscape of today is becoming increasingly complex, leaving those businesses considering a physical presence with a more nuanced decision.
The report’s author, Alex Miles said the team analysed 30 major UK cities using metrics including retail density, vacancy rates, business activity, footfall and local spending power, alongside which they surveyed 1000 UK consumers to understand attitudes towards high streets.
Interestingly, for SMEs wanting to open a shop and make a positive difference, 27% of respondents said there were too few independent shops, stating they would like to see more businesses in the form of clothing stores, bakeries and butchers.
When asked what they felt there were too many of, 38% said there were too many vape shops/tobacconists, while 30% said there were too many charity shops.
And while the findings also revealed that retail footfall in Belfast has fallen by 7.38% over the past year, there was still some glimmer of positivity as Belfast has shown a birth-to-death ratio of 1.18, indicating more retail businesses are opening than closing.
As he unveiled his plans to support businesses in Northern Ireland, the Finance Minister said he recognised the vital contribution made by SMEs to the economy as well as the challenges they face in sustaining growth.
“To support businesses through a fair and equitable rates system, I am announcing the next steps in my programme of rates reform and my intention to consult on the introduction of a Business Growth Accelerator and changes to Non-Domestic Vacant Rating,” said Mr O’Dowd.
The Business Growth Accelerator would give businesses a specified grace period after making improvements. During that time, they would continue to pay rates based on the property’s value before the improvements, delaying any immediate increase.
Updating the Assembly the Minister added: “The proposal to introduce a Business Growth Accelerator would see temporary targeted relief offered to businesses that are taking tangible steps to expand their operations and is designed to reduce the upfront financial pressure allowing them to recoup costs and encourage development that might not otherwise proceed.”
At present, vacant properties are liable for up to 50% of occupied rates. This consultation proposes increasing that liability on a staged basis to 75% then to 100% to encourage re-use of vacant space.
Turning to Non-Domestic Vacant Rating, the Minister said: “Alongside the Business Growth Accelerator, I want to examine how Non-Domestic Vacant Rating operates and how increases in liability levels can be best implemented. The consultation will seek views on introducing a phased approach to increases in vacant rating liability rather than a single-step change.
“I want the rating system to support development, improvement and investment. I want to see additional support directed to those businesses that provide vital employment supporting workers, families, and communities.
“The measures I have set out reflect my ambition to enable business expansion, tackle vacant properties, and help revitalise our towns, villages and high streets.”
