AQW 10126/22-27

Mr Mark Durkan
Social Democratic and Labour Party
Foyle

Tabled Date: 15/04/2024
Answered On Date: 22/04/2024
Priority Written: No

Question:
To ask the Minister of Finance (i) whether she plans to review the business rates system; and (ii) for her assessment of the impact increased business rates are having on small businesses.

Answer:

(i) The rates system and rate reliefs have been subject to public consultation, review, reform and revision in 2007, 2012, 2016, 2017, 2019 and most recently this year. A number of changes have already been implemented from these reviews including more frequent revaluations which helps ensure stability and fairness in the tax system, and a 12.5% reduction in the 2020/21 regional rate poundage.

I recently advised the Assembly that I want to strategically align the rating system here with the Executive’s priorities for Government. Rates are our only devolved tax, contributing £1.5bn to public services, and so it makes sense for it to align with Executive strategy. As a devolved tax it is currently our only substantive revenue raising lever raising vital funds for public services.

(ii) In terms of the impact of rates on small businesses, my Department renewed the legislation for Small Business Rate Relief which will provide £21.5 million of support to 29,000 businesses for 2024/25, providing automatic bill reductions of between 20% to 50% depending on a property’s valuation level. The Executive has also held its annual rate increase for businesses at the rate of inflation and my Department has made and laid legislation for Assembly debate on the restoration of the Back in Business and Rural ATM schemes to further support businesses.

While my Department has no control over district council poundages, I have approved sponsorship of research by the Ulster University Economic Policy Centre on the economic impacts of differential rate poundages set by district councils here, which was initiated following concerns that high district rate poundages in some areas may risk displacement or other adverse impacts.

I also know from speaking to businesses and trade bodies here that there are many wider problems facing them including energy costs, food price inflation, VAT, skills shortages, squeezes on household budgets.