Businesses 'beyond crisis point' over budget

Several business organisations in Northern Ireland have written to Stormont ministers calling for support with their rates bill.

It comes less than two weeks after the Chancellor's budget, which included an increase in the minimum wage and employers national insurance contributions.

The letter says the budget has pushed the cost of doing business to "beyond crisis point" with "thousands of businesses facing an uncertain future, scaling up plans cancelled and additional employment put on hold."

The chancellor announced 40% rates relief for retail, hospitality and leisure businesses in England, but businesses rates are devolved so that relief does not extend to Northern Ireland.

Rachel Reeves announced rates relief for some businesses in England

No rate relief for NI

The new 40% rates relief for some businesses in England is a reduction on the 75% discount which they previously benefited from.

The rates relief for some businesses in England being cut from 75% to 40%, has led to a reduction in funding the Northern Ireland Executive will receive through the Barnett formula.

The letter, which has been signed by 23 organisations, calls on the finance minister to announce "appropriate rates relief" for businesses in Northern Ireland.

A spokesperson for the Department of Finance said £275 million of rate relief is currently provided to support businesses.

It said: "Some £58.2 million has been taken out of the Executive’s funding in relation to business rates.

"This is compared to the 2024-25 position which was reflected in the Executive’s baseline.

"Any support provided for this purpose would need to be considered alongside other priorities with the pressures on the Executive’s finances being well documented.”

Among those to have signed the letter are Retail NI, Hospitality Ulster, and Chambers of Commerce in Antrim, Ballycastle, Ballymoney, Banbridge, Bangor, Belfast, Causeway, Lisburn, Londonderry, Newry, Newtownards, and Omagh.