Regional rates for businesses frozen for another year

Regional rates in Northern Ireland are to be frozen for another year, Finance Minister Conor Murphy has confirmed.

The minister said the continuation of the rates holiday would be a “vital lifeline” for firms which he said would always be supported with  with a £50m rates support package for the 2022/23 financial year as well as  the continuation of Small Business Rate Relief.

The rates freeze will in effect provide all businesses with a one month rates holiday and some with up to three months.

Speaking as he visited Two Sisters artisan food and craft store and Bumbles Day Care in Belfast, Mr Murphy said: “As businesses continue to rebuild, I am announcing a further £50m rates support package to support the recovery. This will provide all businesses with a one month rates holiday with the exception of utilities and larger food stores while retail, hospitality, tourism, leisure, childcare, newspapers and airports will receive a three months rates holiday.

“Businesses in these hardest hit sectors have paid no rates since March 2020 and will now pay no rates until July 2022.”

Welcoming the Assembly approval on the regional rate freeze, he added: “Recognising the cost of living crisis, I had proposed as part of the draft budget a proposal to freeze both the domestic and non-domestic regional rates for the next three years.

“This freeze was intended to help with the rising costs being faced by families and businesses alike. While a final budget for the next three years has not been agreed by the Executive, I can proceed with this freeze for the first year. The Assembly backing today will freeze household and business rates for the next 12 months, giving households and businesses certainty in the immediate time ahead.”

On the extension of the Small Business Rate Relief scheme, under which small businesses automatically receive between 20-50% on their rates, he said the measure would continue to support around 29,000 business premises.

“The extension of the scheme sends a strong message of the important contribution of the small business sector.

“While it’s not possible to finalise the 2022-2025 Budget, businesses need certainty and to be able to plan ahead. These vital measures build on the around £1 billion support my department has provided through rates relief and Covid grants and will give businesses time to recover.”