Finance Minister Halts Business Rates Revaluation Following Industry Pressure

Northern Ireland’s Finance Minister has abandoned plans for a business rates revaluation following widespread opposition from the hospitality industry, which warned the changes could force venue closures and job losses.

John O’Dowd announced the suspension of the Reval2026 scheme, describing the decision as appropriate given the response from affected businesses.

Land & Property Services had published draft revaluation figures for commercial properties earlier this month, revealing that numerous hotels and pubs faced the prospect of their rates bills increasing by 100 to 200 percent.

Speaking about the reversal, Mr O’Dowd emphasised his commitment to supporting local enterprises. He acknowledged the strength of feeling expressed by businesses, particularly within the hospitality sector, and indicated he would examine alternative approaches moving forward.

“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.” He said.

The minister confirmed that businesses would continue paying rates based on October 2023 valuations for the upcoming financial year.

When questioned about the financial implications of abandoning the revaluation process, Mr O’Dowd acknowledged costs had been incurred but suggested the data collected would remain useful for future policy development. He declined to specify the exact cost to public funds.

Industry representatives welcomed the announcement, with Hospitality Ulster describing the sector as having reached a critical juncture prior to the minister’s intervention.

Chief executive Colin Neill said:
“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.

“This demonstrates the value of having locally elected politicians that can intervene.

“Hospitality’s opposition to Reval 2026 has never been based on an unwillingness to contribute our fair share to rates revenue, but about communicating that what was proposed was not fair and would have been the death knell for our industry.

“We now look forward to working with the minister to come to a solution that allows the sector to pay its fair share and develop at the same time, allowing the sector to contribute positively to the growth of the Northern Ireland economy.

“Hospitality stands ready to play its part; we now await the minister’s next steps and further clarity on what this means for our industry.”