Rush for ‘radical’ rates reform

Pictured are (L to R): Colin Neill, chief executive, Hospitality Ulster; Finance Minister Máirtín Ó Muilleoir MLA; and Glyn Roberts, chief executive of NIIRTA.

Hospitality Ulster and the Northern Ireland Independent Retail Trade Association (NIIRTA) have jointly published a plan to radically reform Business Rates.

The plans to reform the Small Business Rate Relief Scheme were presented to Finance Minister Máirtín Ó Muilleoir MLA during a meeting at the beginning of July at NIIRTA’s HQ in Ballyhackamore.

Hospitality Ulster chief executive, Colin Neill and NIIRTA chief executive Glyn Roberts described the alternative Small Business Rate Relief scheme as “radical”, adding that both sectors made “a huge contribution to our local economy”.

“Given that Northern Ireland has nearly twice the UK’s national average of levels of high street dereliction, we believe our rates plan will address this problem and begin to reverse this decline,” they said.

Both organisations propose a tiered system of reliefs ranging from:

•        100 per cent for those with an NAV under £10,000

•         50 per cent for those with an NAV of between £10,000 and under £15,000 and;

•         25 per cent for those with an NAV of between £15,000 and under £25,000.

The total cost of the plan has been costed at £36m, meaning an additional £18m is needed above the £18m it currently costs to provide Small Business Rate Relief.

“In order to fund this additional £18m we recommend that the Vacant Property Relief after 3 months should be reduced from its current 50 to 15 per cent,” they said.

“Our scheme is fully costed and involves no new expenditure to the NI Executive Budget. It is value for the taxpayer, ensuring that the businesses who need help with their rates bill the most, receive it.”

“Directly assisting our independent retail and hospitality sectors is in line with existing rates relief for Manufacturing, Agriculture and Charity shops.”

The Hospitality Ulster and NIIRTA chiefs said the plan would not only be beneficial for many existing independent retail and hospitality businesses, but potentially assist new start-up businesses.

“There is no reason why this new Retail and Hospitality Rates Relief Scheme could not be in place by April 2017,” they added.