Northern Ireland Businesses Urge Stormont for Rates Support Amid Budget Concerns

Multiple business organizations in Northern Ireland have formally appealed to Stormont ministers, requesting assistance with their property tax obligations. This appeal follows the Chancellor’s recent budget announcement, made under two weeks prior, which featured a rise in the minimum wage and employer National Insurance contributions. According to the letter, the budget has escalated operational costs for businesses to “beyond crisis point,” leading to “thousands of businesses facing an uncertain future, scaling up plans cancelled and additional employment put on hold.” While the Chancellor declared a 40% rates relief for retail, hospitality, and leisure sectors in England, business rates are a devolved matter, meaning this relief does not apply to Northern Ireland. This recently introduced 40% rates relief for certain English businesses represents a decrease from the 75% discount they had previously received. The reduction in rates relief for specific businesses in England, from 75% to 40%, has resulted in a decrease in the funding allocated to the Northern Ireland Executive via the Barnett formula. The correspondence, endorsed by 23 different organisations, urges the finance minister to declare “appropriate rates relief” for enterprises operating in Northern Ireland. A representative from the Department of Finance stated that £275 million in rate relief is presently allocated to assist businesses. The spokesperson added: “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.” Signatories to the letter include Retail NI, Hospitality Ulster, and the Chambers of Commerce located in Antrim, Ballycastle, Ballymoney, Banbridge, Bangor, Belfast, Causeway, Lisburn, Londonderry, Newry, Newtownards, and Omagh.