AQW 39034/22-27

Ms Claire Sugden
Independent
East Londonderry

Tabled Date: 26/01/2026
Answered On Date: 26/02/2026
Priority Written: No

Question:
To ask the Minister of Finance whether operating costs, including energy and staffing costs, are taken into account in the valuation of pubs and hospitality premises, for rates purposes.

Answer:

I can confirm that operating costs, including energy and staffing costs, are taken into account when valuing pubs and other hospitality premises for rates purposes. These properties are assessed using the Receipts and Expenditure (R&E) method, which is the same standard approach across England, Scotland and Wales for sectors where rental values are driven by trading performance rather than physical characteristics.

Under this method, valuers estimate the Fair Maintainable Trade (FMT) at the statutory valuation date and deduct typical costs of sales and working expenses, including staffing and energy costs, to determine the divisible balance. A proportion of that balance represents the Net Annual Value (NAV), in accordance with Schedule 12 of the Rates (Northern Ireland) Order 1977.

I would direct the Member to my oral statement to the Assembly and subsequent debate in the House on 2 February:

Finance Minister Oral Statement - Reval 2026 | Department of Finance

Official Reports

I also placed a paper on the Receipts and Expenditure Methodology in the Assembly Library.

Deposited Papers – reference 2034