Northern Ireland businesses "beyond crisis point" as groups call for Stormont to bring in rates relief

Business groups in Northern Ireland are calling for Stormont to bring in rates relief similar to what other areas of the UK are receiving.

The combined call comes after the recent UK Budget increased employers' National Insurance contributions and an increase in the Living Wage, but provided 40% rates relief for independent retail, hospitality, and leisure businesses to offset the increases in England.

The 23 business organisations, Chambers of Commerce and Business Improvement Districts covering businesses in every local town, village, and city in Northern Ireland have written an open letter to every MLA and MP urging similar rates relief for Northern Ireland.

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The open letter states that The Budget has increased the cost of doing business for local businesses to "beyond crisis point" with fears "thousands of businesses face an uncertain future, with scaling up plans cancelled, and additional employment put on hold."

"Our members are struggling to pay the highest business rates in the UK. The decision by the Chancellor to add to this burden by increasing Employers National Insurance will have a negative impact on local jobs, the viability of small businesses and restrict the growth of our economy," the letter continues.

"The Chancellor announced a welcome 40% rates relief scheme for independent retailers and other high street businesses in England. We collectively call for the Finance Minister to use the Barnett consequential of this scheme to provide appropriate rates relief for high street businesses in Northern Ireland.

"This will offset the National Insurance increase and allow high street businesses to reinvest more of their money to create more jobs and boost our economy.

"Previously in England small businesses received 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, local small businesses did not receive a single penny of reduction in their rates bills with the money going elsewhere in the Stormont Budget."

Earlier this year, a Belfast shop owner told Belfast Live the increase in Living Wage means they are spending an additional £2,500 a week on wages and even though they are happy to do so for their staff, it means they are having to find new ways to make up the costs during an already very difficult economic climate.

They added: "If Northern Ireland was to implement the same business rates relief as the rest of the UK we would be in a much better position and it is disappointing that there has not been more movement on this here, because it is desperately needed for businesses across the board."

In response to the issues raised by business groups, a spokesperson for the Department of Finance told Belfast Live: “£275 million of rate relief is currently provided to support businesses. The business rate relief in England for Retail, Hospitality and Leisure was reduced from 75% to 40%, reducing the cost between 2024-25 and 2025-26.

"Some £58.2 million has been taken out of the Executive’s funding in relation to business rates. This is compared to the 2024-25 position which was reflected in the Executive’s baseline. Any support provided for this purpose would need to be considered alongside other priorities with the pressures on the Executive’s finances being well documented.”

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