Last week, Belfast City Council voted to increase its district rate for 2023-24 by 7.99%. For the last seven years, rates have remained at under 3% in Belfast.

This rise of almost 8% means retail properties will face a monthly rise of £42.14 and offices £51.44.

Retail NI Chief Executive, Glyn Roberts described the rate increase as “regrettable” and urged the remaining NI councils not to hike their respective business rates.

“In England small businesses are getting a 75% reduction in their rates to assist with the cost of doing business crisis. Despite the UK Government giving Northern Ireland this funding as part of the Barnett Consequential, our local small businesses are unlikely to get a single penny of reduction in their rates bills with the money going instead into the Stormont black hole,” he said.

“Why should independent retailers and small businesses in Northern Ireland be so unfairly treated in comparison to their English counterparts?”

He added that Retail NI has written to all 11 council CEOs and has also engaged directly with NIO Ministers urging them not to “excessively hike the regional and local business rates”.

“Energy bill increases, labour shortages, business rate hikes, inflation, and falling consumer confidence are all risking the business climate of Northern Ireland,” he added.

“Fears that many will simply go under in the next months without government assistance are keenly felt with this perfect storm of high business costs.”

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The NI Executive remains inactive as the DUP refuses to return to government amid ongoing Brexit negotiations; while Secretary of State Chris Heaton-Harris has called on Stormont leaders to engage in fresh talks ahead of an upcoming election deadline.

Against this backdrop, some of the key figures in business and trade in Northern Ireland have warned retailers to brace for a challenging time ahead and have pleaded with politicians to return to the Executive table.

Chief Executive of Retail NI, Glyn Roberts called on the Executive to be “immediately reinstated” and said the restoration of devolution should be an “immediate priority”.

CHALLENGES FOR BUSINESSES

“Local high streets face their toughest challenge yet in 2023,” said Mr Roberts.

“With a cost-of-doing-business crisis, the most expensive business rates in the UK, rising energy costs, inflation and a fall in spending, 2023 is going to be the biggest ever challenge for Northern Ireland’s high streets.”

Indeed, post-Christmas footfall in Northern Ireland remained low, with a rise of 5.1% in the week after Christmas. While a rise on the same period in 2021, compared to 2019 figures footfall in NI was down 22.5%.

The latest report from retail data firm, Springboard, showed a weaker rate of footfall growth in Northern Ireland when compared to the UK as a whole, with NI seeing the second weakest rate of increase.

In his new year message, Glyn Roberts also pointed out that when rates bills are struck later this year, NI businesses will suffer once again.

‘This is a time when we need political leadership like never before’

NI Chamber of Commerce President, Gillian McAuley

“English independent retailers and small businesses are getting a 75% reduction in their rates bills, yet their counterparts in Northern Ireland will not get this reduction and are likely to have inflation busting increases in their bills when local councils strike their rates,” he said.

“This is blatantly unfair, and Retail NI is making this issue our top priority to ensure there is parity of rates relief for our members.

“Throughout this crisis, we should have had an Executive in place with Ministers pulling out all the stops to support local families and small businesses,” he added.

This sentiment was echoed by the NI Chamber of Commerce President, Gillian McAuley in her new year statement, in which she said political stability was a “pre-requisite”.

“While most businesses continued to trade well or at least reasonably in 2022, by the end of the summer as many as 20 per cent were telling us they were simply covering costs as inflation began to spiral,” she said.

“It is not yet clear what 2023 holds for the world as the protracted war in Ukraine continues. But we do know that this is a time when we need political leadership like never before.

“The cost of having to endure a stop-start Executive alongside battling the pandemic is almost six years of very little strategic decision-making. As a result, we are falling behind significantly in many areas and important time has been lost at a great cost.

“And yes, as is often said, business is ‘just getting on with it’, but there is so much more we could achieve in partnership with a functioning government and legislature,” she added.

The post Political stability is “essential” for NI businesses state industry reps first appeared on Neighbourhood Retailer.

“We wish the new Prime Minister well as he embarks on a tough road ahead” said Glyn Roberts.

“Rishi Sunak needs to hit the ground running to restore political stability of the UK Government and immediately address the economic crisis facing the country”

“His government needs to go further in supporting small businesses in Northern Ireland and the rest of the UK and we urge them to fund a further targeted business rates holiday to support struggling independent retailers and hospitality businesses”

” The Prime Minister also needs to ensure that political stability and devolved Government is restored in Northern Ireland. Many of our members are asking how will a further Assembly Election help or anyway improve an already toxic political situation?

“Real leadership and difficult decisions are needed”

The post New Prime Minister Must Hit the Ground Running – Retail NI first appeared on Neighbourhood Retailer.

The Chancellor announced that the recent rise in National Insurance tax would be reversed from 6 November and the planned rise in corporation tax from 19% to 25% has been cancelled.

VAT-free shopping for overseas visitors will be brought in and planned increases on alcohol have been cancelled.

New low tax investment zones will be set up in England where tax cuts and liberalised planning rules to be offered to release land for housing and commercial use.

Reacting to the Chancellors statement, Retail NI Chief Executive Glyn Roberts said: “We welcome that the Government is to reverse the National Insurance increase which will provide some relief to local independent retailers who are struggling with the cost of business crisis.

“Retail NI will engage with the Secretary of State for NI on how the Investment Zone proposals could apply to Northern Ireland, particularly in town and city centres that have high levels of dereliction and are in need of further support.

”We are disappointed that no funding assistance from Treasury has been allocated to allow a business rates holiday to be introduced locally. If we are to stand any chance of saving local high street businesses and protecting jobs, it is vital that a rates holiday is urgently introduced.

“Lowering VAT rates should also have been included in this statement, rather than focusing on stamp duty and corporation tax.

“The UK Government needs to go a lot further in supporting our local high streets and we will continue to press for further measures.”

Ann McGregor, Chief Executive, Northern Ireland Chamber of Commerce and Industry said businesses would welcome the Chancellor’s pledge to focus on economic growth.

“Inevitably, the devil will be in the detail of these proposals, but they must strike the right balance between tackling immediate pressures, driving reform and providing for a sustainable future,” she said.

“Moves to target certain business costs, including reversing plans to increase corporation tax and national insurance are welcome interventions at a time of critical need. Reversing the planned increase in corporation tax will be crucial for local firms competing on the island of Ireland in particular.

“But today’s announcement just underlines the need for a restored Executive to respond in parallel to protect businesses and unlock sustainable growth locally.

“We need an Executive that can take urgent action on priority issues like reforming business rates, tackling the productivity gap and transforming the planning system to enable green growth. That, combined with resolution on the NI Protocol will help restore much needed business confidence.”

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Reacting to the Prime Minister’s statement on the energy crisis, Retail NI Chief Executive Glyn Roberts said: “The six-month cap on energy costs for businesses is a positive first step in providing support for our members and it is welcome that the Prime Minister has given a commitment that this will equally apply to Northern Ireland.

“However, Government needs to go much further to provide additional support to small businesses struggling with this energy crisis. This should include Business Rates relief, VAT reductions and the reversal of the National Insurance hike.”

Unveiling the two-year Energy Price Guarantee for householders, Liz Truss said this would cap energy bills at £2,500 a year.

She also promised “equivalent support” for six months for businesses, although exact details have yet to be announced.  More support for businesses could be available for vulnerable businesses after that period.

The National President of the Federation of Independent Retailers (the Fed), Jason Birks, said: “Although the devil is in the detail, today’s news of support for businesses should give struggling retailers some comfort and relief.

“Six months is a starting point, but the Fed and its members need longer term assurances that support will be ongoing.

“However, we look forward to hearing more about the financial support that will be available and assisting members in making sure they receive the help and support they need.”

Last week, Mr Birks warned that without financial assistance, the future for independent retailers looked bleak.

“When soaring energy bills are added to falling margins and rising payroll costs, it may only be a matter of time before communities lose access to the groceries and services that local stores provide – but more importantly they will also lose a heart,” he said.

“To survive this crisis, we need more financial support from the government and for the energy price cap to be applied to businesses too, even though this may be too little, too late.”

The Fed is also in regular dialogue with the Department for Business, Energy and Industrial Strategy on issues affecting members, with the most recent meeting taking place this week.

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