Market Update: Economy Minister urged to reverse rates review as hospitality businesses close down – Full Analysis

Sinn Fein’s Dr Caoimhe Archibald said the 2026 revaluation is necessary to ensure “fairness in our rate system”, but that she would request a meeting with the UK Treasury in relation to a potential pilot scheme to reduce VAT for small businesses.

Yesterday, Treasury minister Dan Tomlinson said the property tax bills for pubs and music venues in England will be reduced by 15% in 2026/27 and then be “frozen in real terms” for the next two years.

Last week the Department for Finance headed by Sinn Fein’s John O’Dowd announced Reval 2026, as Land & Property Services (LPS) released a draft list of revaluations for commercial properties.

Properties that have seen above average increases in their value will likely see their overall rating liability increase, resulting in a higher rates bill.

Non-domestic rates generate around £720 million a year, and the Department of Finance says revaluations do not raise additional income but are adjusted to maintain revenue neutrality.

Hospitality Ulster described the move as “unacceptable”, saying in a statement: “At a time when hospitality businesses are battling unprecedented cost pressures, the idea that our sector can absorb significant increases in rates liabilities is utterly detached from reality.”

In the assembly yesterday, SDLP MLA for Foyle Sinead McLaughlin criticised the potential for rates rises, saying “more and more small retail, pubs and hospitality businesses are closing their doors due to rising costs”.

“Three restaurants in Derry city centre announced last week of their intention to close because they can’t make the figures all add up,” she said.

“At the same time, your executive colleague is pressing ahead with a rates revaluation, which could push more and more businesses over the edge.

“What assessment have you made of the impact this decision will have on the hospitality, particularly the pub trade, and on tourism and on jobs and in our town and city centre?”

Ms Archibald said she’d had “significant engagement” with the industry, but added that “most of the pressures” they face “are not within our control”.

Ms McLaughlin, a former chief executive of the Chamber of Commerce in Londonderry, called on Mr O’Dowd to reverse the rates re-evaluation “before more hospitalities actually hit the wall”, putting it to Ms Archibald that such a move is “the purview of this executive”.

In her reply, Ms Archibald said: “Anybody who listened to the finance minister yesterday will be familiar with the reasoning behind revaluations is to ensure there is that fairness in our rate system, to ensure that it keeps up to speed, and one of the asks of the business community was that these revaluations take place on a more regular basis.”

Later in the session, DUP MLA Pam Cameron (South Antrim) asked if the minister accepted that the rise in non-domestic rates would be “devastating for the tourism and hospitality sector”.

Ms Archibald reiterated that she is aware of pressure on the industry and that making “progress in relation to the VAT issue” would be one way to support businesses.