AQW 17490/22-27

Ms Claire Sugden
Independent
East Londonderry

Tabled Date: 04/11/2024
Answered On Date: 14/11/2024
Priority Written: No

Question:
To ask the Minister of Finance whether she plans to align business rates relief with the changes announced for GB business rates in the HM Treasury Autumn Budget 2024, to offset the National Insurance increase for employers.

Answer:

There is no policy linkage between those two measures. National Insurance contribution increases are a reserved matter and business rates are a devolved matter. One is not intended to offset fluctuations in the other.

The reduction in Retail, Hospitality and Leisure support in England from 75% to 40%, meaning the cost of support is lower in 2025-26. The Executive has received a reduction of £58.2 million in 2025-26 in relation business rates. The reduction announced by the Chancellor, confirms the affordability issues that I have consistently alluded to with that business rates scheme. Those affordability issues were exacerbated greatly when implanted into our local taxbase and economy, heavily comprised as it is of SMEs.

My department will be assessing the details and implications of the policy announcements in the Chancellor’s Autumn Budget Statement and the Transforming business rates paper published by Treasury following that Statement.

Further work will then be progressed in this area once the Executive finishes considering my proposals in relation to the strategic short, medium and long-term steps for the rating system.