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Following the launch of a consultation on Non Domestic Rating Measures by the Department of Finance, Newry Chamber of Commerce & Trade and Newry BID hosted a constructive discussion yesterday 16 January between local businesses and Land & Property Services NI at Custom House, Newry on the current consultation.
This consultation came about following the Secretary of State for NI, Chris Heaton-Harris directing Permanent Secretaries of Northern Ireland departments to launch public consultations on measures to support budget sustainability by raising additional revenue.
Andrew McAvoy, Director of Rating Policy at Land & Property Services in NI delivered a presentation on the range of measures currently being consulted upon which could see the removal of industrial derating as one of several revenue raising measures to help plug the gap in the NI budget.
Mr McAvoy also took questions from members of both business organisations on the challenges they face with the current rates system and the proposed changes.
Make your voice heard
Speaking on the challenges Michael Savage, CEO of Newry Chamber said “Newry Chamber has a diverse membership which covers businesses which benefit from the industrial derating which is threatened by these proposals and businesses which are in the retail, hospitality and professional services sector who feel they are carrying a disproportionate share of the rates burden.”
“Today’s event offered the opportunity for all businesses to hear about the consultation process and how they can make submissions ahead of the deadline of Tuesday 13th February 2024. It also allowed business owners the opportunity to highlight their concerns about the rates system in NI and the challenges all businesses face in a difficult trading environment with a rising cost base. I would encourage all our members and the wider business community to make their voice heard and make a submission to the consultation closes next month.”
Greatest barrier to town centre regeneration
Eamonn Connolly, Newry BID Manager spoke of how the current Business Rates system is a barrier to town centre regeneration “Newry BID has lobbied consistently for a Fair Business Rates System and should these reliefs be removed it is essential that the funds raised go in address infrastructure deficits particularly relating to NI Water and Flood alleviation. The current Business Rates System whereby retail, hospitality, professional services and tourism are penalised is the greatest barrier to town centre regeneration and needs to be reviewed as a matter of urgency.”
Newry BID believe that the proposed removal of 50% rates relief on vacant properties (£9 million per year annum) will hit many members and make it even harder to attract investments to our urban centres. The group also would also like to see agriculture included in the rates system as applies in GB to help re-balance the rates burden.
The Department of Finance is seeking views on the following revenue raising measures identified by the Secretary of State.
Domestic rating
The removal of domestic rating support schemes including:
- The early payment discount.
- The maximum capital value cap.
- The landlords’ allowance.
Non-domestic rating
The removal of non-domestic rating support schemes including:
- Non-domestic vacant property relief.
- Industrial derating.
- Freight transport relief.
- Exemption for student halls of residence.
Check out the consultation paper on non-domestic rating measures HERE
Make a submission to the consultation HERE
