NI businesses express 'unhappiness' at rates revaluation

The rateable value of a business property is worked out using its Net Annual Value (NAV)

Businesses in hospitality, convenience retail and student accommodation have expressed unhappiness at a rates revaluation which will see them facing higher bills.

All 74,000 non-domestic properties in Northern Ireland have been officially revalued for the first time since 2015.

Rates bills are based on those valuations, so a higher value will mean higher bills.

More than 90% of hotels have had their valuations increased.

In some cases those increases are substantial, for example the rateable value of the Fitzwilliam Hotel in Belfast has increased by 110%.

Belfast city centre pubs are also facing steep increases in rates.

The rateable value of the Dirty Onion, in the Cathedral Quarter, has increased by 121%.

Colin Neill, from Hospitality Ulster, said the rates revaluation was "a bitter pill" for many businesses in his sector.

"In certain cases it could have a catastrophic and negative impact on some livelihoods," he added.

Many retailers, including large supermarkets, will see their bills fall.

However, the major exception is convenience stores, which trade under brands like Centra and Spar.

Donagh McGoveran, who runs four Centras in Belfast city centre, said he can expect to see his rates bill increase by 10%.

He said: "Convenience stores are what are keeping the high street alive.

"So much for supporting independent family businesses as promised throughout the rates review process."

The rateable value of the Fitzwilliam Hotel in Belfast has increased by 110%

Purpose-built student accommodation (PBSA), which has been developed in Belfast in recent years, is also facing substantial rates rises.

For example, one of the biggest schemes, on Great Patrick Street, has seen its rateable value increase by more than 70%,

In England and Wales, similar schemes do not generally have to pay business rates.

One property industry source suggested the steep rate rise would "kill" the student market with investors reluctant to undertake any new projects.

The rateable value of a business property is worked out using its Net Annual Value (NAV).

NAV is an assessment of the annual rental value that the property could reasonably be let for at a fixed point in time.

The NAV is then multiplied by the "rate in the pound" to produce the annual bill.

Actual rates bills will not be clear until March, when Stormont and the councils set the "rate in the pound".

The revaluation process is "revenue neutral", meaning that those facing higher bills are offset by those facing lower bills.