Rates rise on vacant businesses will help revitalise town centres – O’Dowd

Empty businesses in Northern Ireland could face a rates rise in a bid to tackle the “blight” of vacant units in town centres, John O’Dowd has announced.

The Finance Minister has set out plans for landlords of empty commercial buildings to start paying full rates, generating £20 million for Stormont and local government.

At the moment, vacant commercial properties are liable for just 50% of their rates.

A review of the rating system was announced last year by the Sinn Fein minister’s predecessor Caoimhe Archibald.

Mr O’Dowd told the Assembly that his department had reviewed the rates system to “deliver positive and progressive change”.

He said: “Following the review process over the summer, it is now my ambition to progress enhanced support for small businesses, tackle the high level of vacancies in our towns and city centres, support businesses starting out and help accelerate business growth.”

The minister said he wanted to enhance small business rate relief support.

He said: “Small businesses are the backbone of our economy. I want to see extra help going to those businesses that provide vital employment supporting workers, families, and communities.

“The Small Business Rate Relief currently provides vital support for operating costs for around 30,000 small businesses.

“The support delivered under that scheme has, however, remained unchanged since 2012.

“I want to create a fair environment for all businesses and plan to consult before the New Year, giving businesses the chance to share final views before changes are put to ministerial colleagues on enhancements to the support.”

Mr O’Dowd said the review highlighted the “need to challenge the blight of vacant properties in our villages, towns and city centres”.

He added: “It is my view work now needs to begin to elevate non-domestic vacant rating liability from 50% to 75% and then to 100%.

“I have therefore instructed my officials to take forward the policy work required to implement these changes which have the potential to unlock a further £20 million of revenue between central and local government.”

The move to 75% liability could take place within the mandate of the current Assembly, with the move to 100% liability after that.

The changes require Executive agreement.

Mr O’Dowd added: “We all know our finances are under significant pressure which is why I aim to deliver savings in parts of the rating system and redirect resources to provide additional support to those businesses that need it most.

“Delivering positive change will require buy-in, partnership working and the backing of ministerial colleagues and the Assembly.”

But SDLP Opposition leader Matthew O’Toole said the minister was pursuing an “an endless road to nowhere”.

He said: “The endless consultation and open-ended study of rates is making out that action is taking place when it isn’t.

“Successive Sinn Fein finance ministers have promised changes to the rates system to either make it more progressive, raise money for public services, or help small businesses.

“They have done literally none of this but continue to spoof the public and businesses that they making change.”

Mr O’Toole added: “It goes to the heart of Sinn Fein’s allergy to political leadership. It doesn’t have to be like this, and our people deserve better.”