Time for certainty on business rates – NIRC
With fewer than seven weeks until retailers and other firms become liable for new business rates bills, Neil Johnston, Director of the Northern Ireland Retail Consortium has called on the Secretary of State to act swiftly and decisively on announcing the regional business rates for 2023-24.
Businesses need to plan and to budget, and they need to know what is happening with rates. There is more than enough uncertainty around at the moment without this on top. This decision should have been made last year. While the failure to set a regional rate is ultimately due to the absence of an Executive, Chris Heaton Harris, the Secretary of State needs to act. We all know there isn't going to be an Executive any time soon so let's get on.
The Northern Ireland Retail Consortium represents the overwhelming majority of the retail trade in Northern Ireland by turnover, encompassing many high street names who provide everything from coffee to clothing, a lot of the larger retailers who sell products such as electrical goods, DIY items and gardening supplies, and virtually all the main supermarkets.
NI already has the highest business rates in the UK and the NI Secretary of State mooted the possibility of a further increase for the coming year in a written parliamentary statement in late November. Early last month the NIRC wrote to the Secretary of State asking him to follow his GB counterparts and rule out any increase in the regional business rate.
Mr Johnston has now repeated his recent call for the regional rate to be frozen.
Business rates in England, Scotland and Wales have been frozen for the next year and we now know that all eleven NI councils have unfortunately failed to follow this lead. All councils are putting up their district rate from April – indeed some councils have increased their element of the business rates by over 7% and in one case by over 11%.
We believe this strengthens the case for the regional rate to be frozen. Particularly at this challenging time for consumers we need the Secretary of State to help retailers keep costs down.
We have a vibrant retail industry in Northern Ireland, however, anything that increases costs only results in additional pressures on retailers and consumers alike. Inflation is still very high and retailers’ energy bills are likely to rise significantly in coming months as government support is wound down.