Consultation launched on Small Business Rate Relief
Proposed amendments to the small business rates relief scheme have been dubbed a “mere modest adjustment” and do not come close enough to giving the level of relief required.
Earlier this morning, the Finance Minister launched a consultation on the Small Business Rate Relief Scheme having previously announced plans to bring forward changes aimed at providing greater support for small businesses, in November.
John O’Dowd said he intended to consult on changes to support for small businesses, outlining his view that the scheme currently provides vital support for operating costs for small businesses.
The consultation sets out options to enhance the scheme using two distinct methods;
Increasing percentage reductions – the current relief levels of 20%, 25% and 50% have remained unchanged since 2012. Where funding allows, the Minister wants to adjust the percentage reduction tiers to deliver great impacts.
Updating valuation thresholds – these have now been reviewed since 2012 and the Minister said there is a need for these to be adjusted to reflect modern rental values, particularly as Reval 2026 marks the fourth revaluation in 11 years.
“Small businesses are the backbone of our local economy and I am committed to delivering positive, progressive changes to the rating system here creating a fair environment for all business sectors, fostering entrepreneurship, boosting occupancy of vacant properties and enabling smaller businesses to flourish,” said the Minister.
“This consultation offers businesses and interested parties the opportunity to share their final views before proposals are presented to my Ministerial colleagues. I would encourage everyone to have their say and help to shape this support and deliver local solutions to local challenges.”
However, the proposed amendments to the scheme have been declared “smoke and mirrors” and not real reform.
“What is proposed is a mere modest adjustment where what we need is an across-the-board reform and substantial reduction in rates for our high streets and other retail hubs,” said Neil Johnston, Director of the Northern Ireland Retail Consortium.
“It looks like the Finance Minister is helping business but the reality is the rate burden continues inexorably upwards.
“The revenue from business rates has rocketed by over £100 million in the past five years to fast approaching £400 million a year,” added Mr Johnston.
“A disproportionate amount of that – well over £100 million – comes from the retail sector. That is a huge burden in an industry that has very small profit margins.
“The Finance Minister’s proposals would increase relief for small businesses – including some retailers – from roughly £20 million to £30 million, an increase of about £10 million. Which set against an increase of 41% or £112 million in the past years means he is going to give back a pound for every extra £10 he is collecting.
“It begs the questions; does the Minister want to revive the high streets of Lurgan and Portadown in his own constituency and the other cities, towns and villages across Northern Ireland? He needs to recognise that the world, especially the retail world, has moved on and he needs to radically reduce the rates burden, not tinker around the edges.
“Many retailers have invested heavily in Northern Ireland in recent years but if this chasm in rates persists, there is a danger that Northern Ireland will not get the same retail investment as other areas which are a more viable proposition.”
This focused consultation will run for eight weeks, closing for responses on 29th January 2026 in order to continue to facilitate any changes in time for the 2026-2027 rating year.
For more details, visit www.finance-ni.gov.uk/consultations/small-business-rate-relief-sbrr-options
