Finance Minister John O’Dowd has stepped in to halt the process which would have seen large rates increases for many in the hospitality sector.
Draft property revaluations published last week by Land and Property Services would have seen some businesses facing hugely increased rates bills from 1 April this year. Reval 2026 prompted a furious reaction from individual business owners as well as leading trade bodies like Hospitality Ulster and the NI Hotels Federation.
The pause announced by the minister means that there will be no increases – with next year’s business rates calculated using the current valuation. For many businesses, that means that any change in the rates bill will now be much smaller.
John O’Dowd held back from criticising his own officials (Land & Property Services is part of his Department of Finance) and he defended the overall revaluation process as essential in ensuring fairness in the rates system, but said that this pause was focused on allowing “local businesses to thrive”.
“I have listened carefully and I am very aware of the concerns raised by businesses – particularly hotels, pubs and other hospitality businesses. I remain in listening mode, I will now consider the next steps. My focus remains on supporting our public services, our local businesses and growing our economy.”
Colin Neill, chief executive of Hospitality Ulster, welcomed the news, saying the industry had been brought to “crisis point”.
“At a time when hurt and anxiety were at all-time highs in the sector, it is a relief that the Minister has listened to the people who are both a cornerstone of our economy and who provide an invaluable service to our society,” he said.
The Minister’s U-Turn was also welcomed by the NI Chamber. “Our member businesses, particularly those in the hospitality sector, have been deeply concerned about the scale of potential cost increases during this protracted cost of doing business crisis,” said Chief Executive Suzanne Wylie.
“Earlier this week, NI Chamber published economic survey results showing intensifying cost pressures across every sector. In light of today’s decision, we will now write to the Minister to seek clarity on next steps and request a meeting to discuss the urgent issue of the cost of doing business.
“Businesses need a rating system that supports competitiveness. NI Chamber will continue to press for a transparent and sustainable approach.”