Northern Ireland’s private sector is a facing a ‘perfect storm’ of challenges with Business Rates in 2015.
That was the message of the Northern Ireland Independent Retail Trade Association (NIIRTA) in its evidence to the Assembly Finance and Personnel Committee on (Wednesday 15 October).
Down Councillor Colin McGrath has also said that he is opposed to any increase in the business rates for 2015.
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Glynn Roberts, NIIRTA Chief Executive, speaks out on the 2015 business rates issue.[/caption]
NIIRTA Chief Executive Glyn Roberts told the Finance Committee: “With the Rates Revaluation, Council Rates Convergence, the review of the Small Business Rate Relief Scheme and a forthcoming comprehensive review of Rating Policy all coming in 2015, our business community is facing a ‘Perfect Storm’ of Rates Challenges.
“The Rates Revaluation will result in winners and losers, but our Town Centre traders must not be the losers. It is unfair that large out of town multi-national supermarkets pay less per sq. ft. in rates than a small independent retailer in a town centre. This blatantly unfair unbalance must be rectified as the top priority of the Revaluation.
“On Council Rates Convergence, no business should have to pay extra rates as a result of the creation of the new eleven super councils. It is therefore vital that the new £30m fund addresses this issue.
“While the current Small Business Rate Relief Scheme (SBRRS) has been well received, we also believe there is an argument to look at a targeted approach to support retailers in town centres and arterial routes.
“NIIRTA would call upon DFP to establish a targeted Town Centre Rate Relief Scheme, which would provide a 25% reduction for town centre retailers and those in the hospitality sector. In much of the discussions on town and city centres, the question of regenerating villages has been left out. We would urge DFP to consider a Rural Retail Rate Relief Scheme for those retailers who are an integral part of village life.
“NIIRTA calls upon DFP to change the qualifying criteria of the Empty Premises Relief from a property having to be twelve months vacant to six months to ensure a faster turnover. This scheme has helped to create nearly 331 new businesses and must be built upon.
“While we are happy for the current SBRRS to continue, NIIRTA believes that a new, targeted approach to addressing the twin challenges facing Independent Retailers and Town Centres is needed. Over 3000 independent retailers have closed in the past four years and Northern Ireland continues to have the highest shop vacancy rate in the UK.
“NIIRTA has never envisaged the SBRRS as a temporary recessionary measure, but as a scheme that enables local business to keep more their hard earned funds and reinvest them back into their business for future growth.”
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Councillor Colin McGrath is opposing an increase in business rates in South Down.[/caption]
McGrath Says Business Rates Must Not Increase
Cllr Colin McGrath has called on the new Newry, Mourne and Down Council to ensure that business rates are not increased.
Commenting the Downpatrick Councillor said: “Businesses are still finding it a very tough economic environment at present with reduced footfall and less disposable income. For councils to increase their business rates against this background would result in shop and business closures.
“The Northern Ireland Independent Retail Trade association has referred to the ‘Perfect Storm’ which will impact local bushiness with Rates Relief Scheme reviews, rates revaluations and council rates convergences all taking place at the same time.
“We must recognise the contribution that local businesses make in our community and reward them for the work that they do rather that ‘punishing’ them with increased rates.
“Council has its opportunity now to state loud and clear that the needs of the local independent retailer are front and centre of our concerns and will be supported by their local council to help them flourish and develop and provide a vibrant and growing high street in the towns of our area,” added Cllr McGrath.
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