Hospitality industry welcomes review of rates costs

Colin Neill of Hospitality Ulster was commenting after almost 75,000 non-domestic properties in Northern Ireland are to receive new valuations for their business rates bills from April.

He was pleased that Stormont had acted to re-evaluate the situation facing pubs and hotels in light of the damage caused to trading by the Covid pandemic.

"The devil is always in the detail," he said.

"I’m glad we were able to persuade LPS (Land and Property Services) that the impact of Covid had to be taken into account. And I’m glad we were able to get some movement to help some of the sector, but the worry is that some may go up while, they are indicating, a significant number will reduce.

"But it’s only their NAV (net annual value) reducing – the big worry for us is, what is the district rate going to be struck at in each council area?”

Mr Neill said he has some indications of local district rates increasing by around 10-12%, and added: “There are positive elements to this but the bottom line is that businesses’ profitability has been hit and there is no point that if you do see a reduction in your NAV, only to see rate in the pound go up and you actually end up with an increase [in your overall rates costs].”

Mr Neill said he would like to see a Westminster funded 75% rate relief scheme rolled out in England replicated in Northern Ireland.

"I really get it that the councils have to find money and that’s why if the Barnett consequential money, that came [from Westminster] for rate relief, was given to the businesses that Westminster decided needed it, that would help everybody, because then it would take the pressure off the businesses and still allow the councils to get their increase.”