FSB Northern Ireland have today submitted our response to the Department of Finance’s review of Business Rates. In the submission we call for:
- The Small Business Rate Relief scheme to be embedded permanently and enhanced.
- The introduction of a ‘start-up relief’ to allow new businesses space to get on their feet.
- The rates system to be better aligned with cross-cutting Programme for Government objectives, such as enabling parents to return or remain in work; and creating a balanced regional economy.
Commenting, FSB NI Head of External Affairs, Roger Pollen said:
“Rates are often an ‘up-front’ fixed overhead that is levied irrespective of revenues or profit. The issue facing the rating system is how to move from being regressive and disproportionate, towards fairness and continuous improvement.
“The first thing policymakers must do is embed the Small Business Rate Relief scheme permanently, rather than it being subject to review each year, causing needless uncertainty. The loss of this relief would lead to the doubling of rates to the smallest businesses.
“Given that the Northern Ireland block grant has received significant additional funding in recent years as result of further rates relief in England, the Small Business Rate Relief should also be enhanced to reflect this additional funding, rather than it being used to fund other pressures in the public sector.
“In order to help start-up businesses get on their feet we argue for a dedicated rates exemption for start-ups who operate out of non-domestic properties. Ideally, this would be addressed through the introduction of a ‘business allowance’ so rates can be phased in to allow the business to be fully established before becoming liable for the full rates bill.
“This would help grow our business start-up rate, which has still not recovered to its pre-recession levels and help align with the cross-cutting policies of the Programme for Government to grow the private sector. In this spirit, reinstating Rural ATM relief and introducing 100 percent relief for independent childcare providers would help maintain business activity in rural communities and ensure accessibility of affordable childcare, objectives which are relevant to outcomes outlined in the Programme for Government of creating a balanced regional economy and allowing to parents to join or remain active in the labour market.
“Government has a role to play in helping businesses to achieve their ambitions rather than impeding their success, acting on these recommendations would help move us in that positive direction.”
Notes to editor
- You can find our response to the consultation in the publications section of our website.
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