Covid-19: NI businesses to get £50m rates support package

Hospitality businesses will receive a three-month rates holiday

Northern Ireland's Finance Minister Conor Murphy has confirmed a £50m rates support package for businesses.

An extension of the business rates holiday has been confirmed, alongside a discount for small businesses.

The assembly has also backed a freeze of the regional rate for another year.

The majority of businesses in Northern Ireland have not paid business rates over the course of the pandemic and most point to the property tax as one of their largest overheads.

Most will not pay rates for a further month, with the exception of utility companies and larger food stores.

Other sectors will receive a three-month holiday, including retail, hospitality, tourism, leisure, childcare and airports.

Patricia Maxwell welcomes the three-month rates holiday for her business

Patricia Maxwell, who manages Bumbles Day Care in Belfast said the three-month extension was very welcome.

"It mitigates against other costs that we are experiencing, the main one being extra staffing during this period of time, which has been colossal," she said.

"It also allows us to continue to spend money where it matters on resources and ensuring the environment is safe for the children."

She added: "I'm hoping staffing pressures and energy prices will have eased by the time the payments return, but I don't anticipate they will just disappear in a puff of smoke."

Small businesses like The Two Sisters will see business rates relief extended

The finance minister also extended business rates relief for small businesses.

They will automatically receive a discount of between 20% and 50%, depending on the Net Annual Value of the property.

That will benefit businesses such as The Two Sisters in east Belfast which is owned by Victoria Nichol.

"There's so much instability and change at the moment so anything that can help reduce your running costs and helps you to focus on maintaining your profitability in the short-to-medium term is welcome," she told BBC Radio Ulster's Good Morning Ulster programme.

"The discount takes the pressure off. Knowing we have that bit of help gives you comfort going forward for the rest of the year."

Conor Murphy said he was frustrated the regional rate could not be frozen for longer

Mr Murphy also received backing to freeze the regional rate for households and businesses for another year.

Rates are set at a regional level each year by Stormont and a rate is then also decided at a district level by each council in Northern Ireland.

The regional rate covers services like hospitals and roads maintenance, while the district rate covers services such as leisure centre facilities and waste management.

All of Northern Ireland's 11 councils have agreed rates increases for 2022-23.

The minister told BBC News NI he was frustrated he could not freeze the regional rate for longer.

"We had intended to freeze that regional rate for a three-year period but with no executive sitting, I have been told legally that one year is as much as I can go at this time. I hope an incoming executive would be able to revisit that," he said.

"We have an opportunity for a three year budget to tackle the big issues in health and we'd been promising to do that and here we are on the cusp of doing that and one party brings the executive down and we can't take those decisions.

"We have an additional £300m we could allocate next year to support departments that have real pressures and we can't do that either, so it's hugely frustrating."