Retailers are warning of the risks and
consequences for Northern Ireland's high streets from inaction on
business rates as other parts of the UK press ahead with
permanent rates reductions for shops from
April.
Both the UK and Welsh governments have
recognised retailers pay a disproportionate amount in business
rates and are introducing permanent rates reductions for shops
from April 2026. The Chancellor of the Exchequer is expected to
confirm in her UK Budget this week the size of reduction in the
business rate that will apply to retailers in England in the
coming financial year. The Welsh Government has also announced it
will reduce rates for shops from
April.
The Northern Ireland Retail Consortium
is calling on policymakers to ensure all retailers in Northern
Ireland also benefit from a permanent reduction in business
rates. The NIRC is warning that a less competitive business
rates regime here would be bad for retailers but also for
Northern Ireland's retail
destinations.
Despite some welcome modest reforms to
the rating system by the Finance Minister the overall level of
business rates remains too onerous. Business rates are set by the
combination of the regional rate set by the Executive and local
element set by each of the eleven councils.
In recent years many councils have
imposed significant increases in business rates well in excess of
inflation and the regional rate has also continued to go
up.
Neil Johnston, Director of the
Northern Ireland Retail Consortium,
said:
“Governments in England and
Wales acknowledge the
rates burden on retail is disproportionately high and are
bringing in permanent rates reductions for the industry from
April. Unless we see action to reduce business rates for all
retailers in Northern Ireland then stores here risk being put at
a further competitive disadvantage and potentially materially
so. It's not in the
interest of Northern Ireland's economy, nor our high streets and
retail destinations, for retail businesses to be incentivised to
invest in England and Wales over towns and cities in Northern
Ireland.
“The retail industry and the
Executive have a shared goal in boosting Northern Ireland's
high streets. Following closely on the UK budget it's imperative
the Finance Minister sets out in his draft Budget a concrete
3 year plan to permanently reduce the business rate applied to
retailers of all sizes. Failure to do so could see consequences
for commercial investment and for the condition of Northern
Ireland's town centres and other retail hubs, as
destinations in GB become considerably more attractive and
cost-effective locations to trade and invest
in.
“Retail trading is tough right now.
Continued investment is essential to keep shops viable and
attractive to customers. If it becomes materially more expensive
to run shops in Northern Ireland than elsewhere that's likely to
shift investment to other areas. It's up to Executive and the
Assembly to ensure Northern Ireland remains
competitive.”
