Targeted business rate relief is being developed: NI minister

A targeted rate relief for businesses impacted by the COVID-19 pandemic is being developed, Stormont’s finance minister has assured Mid Ulster District Council.

At Mid Ulster District Council’s April meeting members agreed that Council should write to Finance Minister Conor Murphy, and request that consideration be given to extend his department’s business rates holiday to 12 months.

At present, the scheme is only in operation for three months.

In response to the letter, Murphy said the scheme his department runs is more comprehensive than its English counterpart and that if it were to be extended to cover a 12 month period it would cost £300 million, money the finance minister claimed is “not available to the Executive”.

Murphy did, however, acknowledge that businesses are going to need further support if they are to recover and said his department is working to provide a “targeted rates relief scheme for the months ahead”.

“In relation to my current policy, the three months business rates holiday which I introduced represents an immediate response to the issues being faced, one which enabled the Executive to get support out on the ground as quickly as possible and provide immediate reassurance to all businesses at this uncertain time,” wrote Murphy.

“This scheme provides support to all business ratepayers as opposed to the English scheme that assists only retail, hospitality, and leisure sectors. If the English scheme had been introduced here, 60 per cent of businesses would have missed out on much needed support.

“Given your Council’s position as home to a significant range of manufacturing, engineering, construction and agri-food industries, a large proportion of your businesses would have received no support should this scheme have been adopted.

“Under my scheme, however, businesses in the commercial, manufacturing and service sectors, which have all been impacted by the pandemic, have also benefited.”

The finance minister continued by noting that this package has saved businesses across the region over £100 million and has been funded entirely by the Executive.

The letter continued by acknowledging that more needs to be done to help businesses recover from the pandemic.

“My Executive colleagues and I have, however, acknowledged that further support by way of rate relief will be necessary to help and promote sustainable businesses in all sectors which have been hardest hit by Covid-19 and also to encourage new businesses to establish as we recover from the pandemic,” it read.

“Recognising the urgency of the need for additional support, my Department is currently working with the Ulster University Economic Policy Centre with a view to developing a targeted rates relief scheme for the months ahead so that limited public resources can be targeted at the businesses and sectors hardest hit by the pandemic.

“Ministerial colleagues and I met with Mr Hetherington, Director of the Ulster University Economic Policy Centre, on May 5 to discuss his draft findings.

“I have asked for his final report to be provided as soon as possible as this work will inform proposals which I will bring to the Executive in the coming weeks to allow the most appropriate response to our local circumstances to be implemented.

“If we were to extend the existing rates holiday for a full year this would cost an additional £300m, resources that are not available to the Executive.”

Murphy concluded by encouraging Mid Ulster District Council to put forward any other proposals it feels could help businesses survive and thrive.

“I expect further measures to be considered in the context of the COVID-19 recovery plan, which the Executive is currently considering. If there are measures that your Council consider should be explored, then I would be happy to discuss these with you,” wrote Murphy.