NIRC analysis suggests store was set to pay £20,000 Stormont surtax from April
An analysis by the Northern Ireland Retail Consortium suggests that McKillen’s in Ballymena would have faced a business rates bill £20,000 higher than in England from 1 April 2026.
Neil Johnston, Director of the NIRC commented:
It’s a great shame when any store feels it has to close. However, the cost of living and cost of doing business remain major challenges and that’s why it is critical government policy doesn’t add to the predicament.
This is why the NIRC has repeatedly called for cuts to business rates for retail, hospitality and leisure. We simply cannot continue with a ‘business as usual’ approach to the rates. The world of retail is changing, and we must address this if we want to arrest the decline of our town centres and other retail hubs.
The Westminster government has at least begun to realise that – although even it has not been as radical as we would have wished. They have legislated for substantial cuts to rates resulting in the situation where, while shops in Ballymena are facing rates of 71p in the pound, in England they would face 43p in the pound. The Scottish and Welsh administrations are also bringing in dedicated rates discounts for retail from April.
The problem is much more fundamental than some businesses having issues with their valuation. The other part of the rates equation – the multiplier or tax rate - is crucial.
From a quick analysis it appears McKillen’s premises has a valuation of £68,000. So, they would be facing a bill of £48,747 on 1 April 2026. A premises with an identical valuation in England would be facing a bill of £29,240. That's a difference of £19,507.That represents an astonishing extra £20,000 a year to do business in Northern Ireland – and responsibility for that rests solely with Stormont.
I wrote to the Finance Minister and to every councillor in Northern Ireland earlier in the year. I appeal to the Minister to, at the very least, freeze the regional rate this year and to cut it in the following two years. I asked councillors to exercise similar restraint.
At present, the Minister is proposing an increase of 3% this April, 3% next April and 3% the year after. Mid and East Antrim have just agreed to an increase of 2.95% this April.
To address vacancy rates and the decline of our town centres we need fundamental reform of the rating system that will reduce the burden on retail, hospitality and leisure.
