UK business rates: Northern Ireland ditches revaluation
Finance minister John O’Dowd has stopped the Reval 2026 process amid business rates chaos for UK hospitality businesses.
O’Dowd said: “I want our local businesses to thrive; they are the backbone of our communities. I have listened carefully and I am very aware of the concerns raised by businesses – particularly hotels, pubs and other hospitality businesses.
“I remain in listening mode; I will now consider the next steps. My focus remains on supporting our public services, our local businesses and growing our economy.”
The move follows Westminster’s decision to offer a 15% business rates discount to pubs and bars after originally promising to reform the system in the autumn Budget. The new system would have raised rates by 76% in three years.
As business rates are a devolved issue, each nation can set its own policies, however Westminster will provide extra funding so they can implement similar relief.
Colin Neill, chief executive of Hospitality Ulster, welcomed the news: “At a time when hurt and anxiety were at all-time highs in the sector, it is a relief that the minister has listened to the people who are both a cornerstone of our economy and who provide an invaluable service to our society. This demonstrates the value of having locally elected politicians that can intervene.
“Hospitality’s opposition to Reval 2026 has never been based on an unwillingness to contribute our fair share to rates revenue, but about communicating that what was proposed was not fair and would have been the death knell for our industry.
“We now look forward to working with the minister to come to a solution that allows the sector to pay its fair share and develop at the same time, allowing the sector to contribute positively to the growth of the Northern Ireland economy.
“Hospitality stands ready to play its part; we now await the minister’s next steps and further clarity on what this means for our industry.”
The recent Scottish Budget included a 15% non-domestic rates relief over three years for retail, hospitality and leisure venues that qualify for the basic and intermediate property rates.
The Scottish Hospitality Group has now called upon the Scottish government to follow Northern Ireland in pausing revaluation.
Stephen Montgomery, director and spokesperson for SHG, said: “There is no point tinkering with this broken rates system in the way it affects our sector any longer. The inflation-busting rises faced by licensed hospitality in Scotland are simply unaffordable and unacceptable.
“Northern Ireland are showing it is possible to pause, and they are the first administration to see sense and abandon the whole calamitous revaluation.
“We demand that the Scottish government halt any increases in rates bills for licensed hospitality.
“There shall be a review of valuation methodology, but the conclusions may come too late for businesses faced with eye-watering increases in April. Would it not be fairer and better for the economy to halt any increases in rates bills now, and let the review do its work? This would mean that no business was facing an increase while the review was underway.
“We need real political leadership in helping licensed hospitality during the cost of business crisis. So far, the Scottish government response to the revaluation impact is woefully inadequate.”
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