Murphy confirms £50 million rates support package

The Minister also confirmed he intends to provide businesses with a £50 million rates support package in the 2022/23 financial year as well as continuing the Small Business Rate Relief which will benefit thousands of business premises.

Visiting Two Sisters artisan food and craft store and Bumbles Day Care in Belfast, which will benefit from the extension of the rates holiday, Minister Murphy said: “Over recent months I have visited businesses from all sectors across the North. The common message coming from these businesses has been that the rates holiday was a vital lifeline for them during the pandemic.

“As businesses continue to rebuild, I am announcing a further £50 million rates support package to support the recovery. This will provide all businesses with a one month rates holiday with the exception of utilities and larger food stores while retail, hospitality, tourism, leisure, childcare, newspapers and airports will receive a three months rates holiday. Businesses in these hardest hit sectors have paid no rates since March 2020 and will now pay no rates until July 2022.”

Welcoming the Assembly approval on the regional rate freeze, Minister Murphy, continued: “Recognising the cost of living crisis, I had proposed as part of the draft budget a proposal to freeze both the domestic and non-domestic regional rates for the next three years. This freeze was intended to help with the rising costs being faced by families and businesses alike. While a final budget for the next three years has not been agreed by the Executive, I can proceed with this freeze for the first year. The Assembly backing today will freeze household and business rates for the next 12 months, giving households and businesses certainty in the immediate time ahead.”

The Finance Minister also announced the extension of the Small Business Rate Relief scheme, under which small businesses automatically receive a reduction of between 20% and 50% on their rates.

Outlining the importance of this for small businesses, Minister Murphy, explained: “Small businesses are at the core of our local economy and have a vital role in contributing to employment opportunities. I am glad to announce the continuation of the Small Business Rate Relief scheme which currently supports almost 29,000 business premises. The extension of the scheme sends a strong message of the important contribution of the small business sector.”

The Minister concluded: “While it’s not possible to finalise the 2022-2025 Budget, businesses need certainty and to be able to plan ahead. These vital measures build on the around £1 billion support my department has provided through rates relief and Covid grants and will give businesses time to recover.”

The Minister also met with Retail NI CEO Glyn Roberts at Two Sisters Deli in South Belfast to highlight the package.

Retail NI

Welcoming the announcement, Retail NI chief executive Glyn Roberts, praised the news: “This is a very welcome package of support for our members and the broader business community. We appreciate that the Minister has listened and acted upon the concerns of our members.

“Continuing the Rates holiday by another three months and extending the Small Business Rate Relief scheme will be well received by small traders particularly given the twin pressures of rising energy costs and the forthcoming National Insurance hike.

“After the Election it is important that the Assembly and Executive agree a broader reform of the entire system of business rates as they are the highest in the UK. This package is a significant step in the right direction but much more will be needed to support the recovery of our high streets.”

Baker Tilly Mooney Moore

Reacting to the announced, Business Services Partner at Baker Tilly Mooney Moore Stephen McConnell, said: “The £50 million rates support package is a welcome relief that will ease a small element of the pressure businesses in retail and hospitality are currently facing. The package, which extends the full rates holiday in these areas to July 2022, will allow firms that are just getting back on their feet following the removal of all legal Covid-19 restrictions to repurpose the money towards other rising cost bases.

“Acting for many companies in retail and hospitality, I am advising clients of the need to prepare accurate cash flow projections to mitigate future financial challenges. Today’s announcement is an opportunity for these companies to prepare their accounts for the three-month extension at a time when their overheads are already being squeezed from all angles, not least due to soaring energy costs and the pending rise in National Insurance Contributions, VAT and wage bills.”

Hospitality Ulster

Colin Neill, chief executive of Hospitality Ulster also thanked the Minister: “This announcement will bring some relief to many businesses who have been struggling with steep overheads and looming bills. The freeze of rates is very welcome as businesses focus on the rebuilding of the sector and prioritise investing in revitalising premises and the hospitality offer to ensure the sector returns to its former prime. We thank the Minister and his Department for recognising the need for a further freeze on rates payments as this new phase of recovery begins in earnest.

“We also welcome the news that the Minister intends to provide businesses with a £50 million rates support package in the 2022/23 financial year which will provide a three month rates holiday for hospitality businesses, as well as continuing the Small Business Rate Relief scheme. Any form of financial assistance at this time of uncertainty will relieve some of anxiety and stress for hospitality businesses owners who are only at the very early stages of recovery, and contending with the rising cost of energy, food supplies, alongside a labour shortage and huge overhead bills.

“When we met the Minister earlier this week, we highlighted the current financial challenges faced by the industry and made the case that further interventions may be needed as the year progresses. Both sides agreed to maintain regular engagement to monitor the developing situation and we are pleased to see this announcement today.

“This rates freeze, and other financial measures, is another step in the right direction. We now urge Executive Ministers to work with us on a dedicated hospitality strategy which will further support the industry get back on equal footing and ensure the renaissance of hospitality in full so it entirely returns to the £2bn economic driver it was pre-pandemic.”

Londonderry Chamber

Londonderry Chamber President Aidan O’Kane, said: “This is a welcome announcement by the Finance Minister which will relieve stress from business owners at a time of rising costs across the board. Businesses of all shapes and sizes are under pressure right now with inflation at its highest level in decades and other costs like energy and materials going through the roof. The freezing of the regional rate for another year will allow businesses, especially small businesses, to breathe that much easier in the coming months.

“As we seek to recover and rebuild from the pandemic, government support will still be crucial in helping our businesses get back on their feet. With the continued uncertainty over the state of the three-year budget, however, it’s important that the Executive continues to provide support for small businesses wherever and whenever it can.”

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