'Resilience isn’t enough': Northern Ireland businesses call for urgent rates reform to save the high street
LQ BID backs UK-wide campaign for a one-third cut in commercial rates as vacancy levels rise and businesses face mounting costs
Northern Ireland businesses are calling for urgent reform of the commercial rates system, warning that rising costs and outdated structures are placing increasing pressure on high streets across the region.
The latest figures from the Department for Communities show vacancy rates across Northern Ireland stand at around 23%, with almost 5,000 non-domestic properties currently unoccupied. Business leaders say the current rates model is contributing to the challenges facing town and city centres, with independent retailers, hospitality operators and major brands all feeling the impact.
Retailers including River Island, Claire’s and Poundland closed stores in 2025 as part of cost-saving measures, adding to concerns about the long-term economic and social impact on locations including Belfast, Bangor, Lisburn and Omagh.
Now LQ BID is backing the UK-wide Real Rates Reform campaign, which is calling for a major overhaul of the system to create a fairer balance between physical businesses and online retailers.
The campaign proposes the introduction of a Hybrid Business Rate model, which would maintain a property-based tax at a reduced level for high street businesses while introducing a modest digital tax on online sales subject to VAT.
Under the proposal, commercial rates would be reduced to 34.8p – the same level that applied when the current system was introduced in 1990/91 – resulting in a reduction of more than one-third in rates liabilities.
LQ BID chair Eamon Butler, who is also facilities and workplace director at Kainos, has been championing the campaign locally and represented the organisation alongside Belfast Chamber in discussions with the Finance Minister and at the official launch of Real Rates Reform in London.
He said the current system no longer reflects the realities of modern commerce, with businesses investing in physical premises carrying a disproportionate share of the taxation burden.
“The current business rates system no longer reflects the realities of today’s economy,” he said.
“In recent years, a dynamic tension has developed between digital commerce and town centres, and the businesses that invest in physical premises are carrying a disproportionate burden despite creating jobs, attracting footfall, and contributing to the long-term success of our towns and cities.”
Mr Butler said reform was needed to give businesses the confidence to invest in their premises and protect jobs.
“Commercial property, and the high street, continues to show incredible resilience, but resilience isn’t enough,” he added. “It’s time for critical change and Northern Ireland needs to echo efforts happening across the water.”
LQ BID and the Association of Town and City Management have also raised the issue with Land and Property Services, seeking greater support for businesses facing rising pressures.
Chris McCracken, managing director of LQ BID, said reform was essential to creating sustainable conditions for Northern Ireland’s town centres.
“As a placemaking organisation, supporting vibrancy in our city centre is one of our primary objectives,” he said.
“The reasonable and viable solution is a one-third cut in commercial property rates in Northern Ireland. A coffee shop in the Linen Quarter would face an annual rates bill of about £30,000, but under the new proposal that could become a more sustainable £20,000.”
The campaign argues that a hybrid approach, combining property-based taxation with a contribution from online sales, would better reflect the modern economy. Online sales currently account for 29% of total UK retail sales, according to the Office for National Statistics.
It also proposes exemptions for online transactions that support physical locations, such as click-and-collect orders and ticket sales, which encourage footfall in towns and cities.
Alongside reform of existing rates, LQ BID is calling for changes to the 90-day rule for new commercial developments, which currently means buildings can become liable for rates after 90 days even when they remain vacant.
Mr McCracken said removing that requirement could encourage more investment in new commercial property by allowing rates to become payable once buildings are occupied.
Since 2018, LQ BID has delivered £5 million of public realm improvements across more than 50 projects and says rates reform is essential to ensuring businesses can continue contributing to vibrant communities.
The Real Rates Reform Alliance includes organisations such as the Association of Town and City Management, UKHospitality, the Institute of Directors, Music Venue Trust and the British Independent Retailers Association.