Finance Minister John O’Dowd has announced plans to introduce targeted rate relief to help businesses expand and bring vacant properties back into use, aiming to boost investment and revive local areas.
Speaking in the Assembly the Finance Minister said: “I have consistently backed small and medium businesses, recognising both their vital contribution to the economy and the challenges they face in sustaining growth.
“To support businesses through a fair and equitable rates system, I am announcing the next steps in my programme of rates reform and my intention to consult on the introduction of a Business Growth Accelerator and changes to Non-Domestic Vacant Rating.”
The Business Growth Accelerator would give businesses a specified grace period after making improvements. During that time, they would continue to pay rates based on the property’s value before the improvements, delaying any immediate increase.
Updating the Assembly the Minister said: “The proposal to introduce a Business Growth Accelerator would see temporary targeted relief offered to businesses that are taking tangible steps to expand their operations and is designed to reduce the upfront financial pressure allowing them to recoup costs and encourage development that might not otherwise proceed.”
At present, vacant properties are liable for up to 50% of occupied rates. This consultation proposes increasing that liability on a staged basis to 75% then to 100% to encourage re-use of vacant space.
Turning to Non-Domestic Vacant Rating, the Minister said: “Alongside the Business Growth Accelerator, I want to examine how Non-Domestic Vacant Rating operates and how increases in liability levels can be best implemented. The consultation will seek views on introducing a phased approach to increases in vacant rating liability rather than a single-step change.”
The Minister concluded: “I want the rating system to support development, improvement and investment. I want to see additional support directed to those businesses that provide vital employment supporting workers, families, and communities. The measures I have set out today reflect my ambition to enable business expansion, tackle vacant properties, and help revitalise our towns, villages and high streets.”