John O'Dowd
Upper Bann · Sinn Féin · Northern Ireland
“As I set out in response to the previous question, we have in place the vacant property rate relief scheme and the small business rate relief scheme, which are very successful. I set aside £10 million in the draft Budget for small business rate relief to be invested.”
“I am particularly keen to hear from those impacted by vacant commercial units and especially about how any phased increase can be implemented in a sustainable way that is fair, proportionate and sustainable within the tax system.”
“I outlined my intent to take that approach in my statement on 18 November, alongside the fact that reform of rating policy should support growth, make better use of property and ensure that the system is fair, proportionate and aligned with wider economic objectives.”
“The accelerator will operate alongside our highly successful Back in Business scheme, which has helped to bring over 100 vacant high street properties back into use since May 2024. Those issues have been the subject of considerable interest and comment in the Assembly, and it is right that we grasp the nettle now.”
“There are no circumstances in which a hard border would be good for the people of Ireland; it would not be good for anyone. Those who suggest that are being naive at best and dangerous at worst, in the sense of not understanding this society. <BR /> <BR />Rural communities along the border are one and the same.”
“This announcement represents the next step in that. That said, I also put on record my intention to strengthen support for small businesses. In that vein, £10 million has been set aside in the draft Budget to broaden the impact of the small business rate relief scheme in order to increase the number of businesses that can benefit from it.…”
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“<BR /> <BR />I reiterate how important it is for me as Minister of Finance that our businesses thrive. Stopping the process allows space for sectors to provide the much-needed evidence to allow for a full examination of the issues. My focus remains on supporting our our public services, our local businesses and workers and families and on growing our economy for the betterment of all.”
“<BR /> <BR />Members will be aware that, on foot of intensive engagement with businesses throughout the summer, I have committed to bringing forward proposals for a business growth accelerator policy. It will seek views on the policy options for using the rating system to aid business expansion while unlocking future increased rates income for local and central government. That unlocking of future tax-based growth would operate alongside existing initiatives brought in since the restoration of the Executive last year, such as the Back in Business scheme. It would support businesses, including those in hospitality, that wish to expand their premises. That proposal was put to my office in the engagement with hospitality businesses and demonstrates that my officials have been listening through the proactive engagement.”
“<BR /> <BR />I want to see extra help going to businesses that provide vital employment, supporting workers, families and communities. That is why my Department launched a consultation on the small business rate relief scheme in early December. The consultation closed last Thursday. My officials are analysing the responses to the proposals, with early indications showing broad support for the approach being taken to try to help businesses, despite the pressure on Executive finances. I have already set aside additional funding of £10 million in the draft Budget to support those efforts. My officials are working at pace to allow those support measures, if approved by the Executive, to take effect from April 2026.”
“Those need to be transparent and fair to every ratepayer and to meet the need to support public services and the wider economy. <BR /> <BR />Since becoming Finance Minister, I have been unequivocal in my support for businesses. I have extended the Back in Business scheme to support entrepreneurship by encouraging businesses to set up in long-term vacant properties. I have extended the rural ATM scheme to help people to access cash easily, something that is especially important in rural communities, given bank closures, and I have extended the small business rate relief scheme, which provided around 30,000 businesses with reductions of between 20% and 50% on their rates bill. I am on record in setting out my ambition to go further, including to enhance support for small businesses through that scheme.”
“I have listened carefully to the concerns of the hospitality sector about the implications of implementing the revised values in April. I value our businesses and their contribution to the local economy and civil society. <BR /> <BR />My decision to halt has not been taken lightly. That decision reflected the clear need to take stock and to allow for constructive dialogue and engagement to ensure that any changes are implemented in a way that is fair, evidence-based, transparent and sensitive to the economic realities — positive and negative — currently facing non-domestic ratepayers. The conversation has started. I met hospitality representatives on Thursday. I will look at any alternative methodology proposals that people want to offer.”
“I wish to provide Members with a statement in relation to my decision to stop the publication of the new valuation list, the process known as "Reval2026". <BR /> <BR />Small and medium-sized businesses across all sectors are the backbone of our economy. The sustainable growth of our local economy is crucial for all our people. As the Minister of Finance, I am absolutely committed to supporting business growth and development. <BR /> <BR />Stopping the process allows space for sectors to provide the much-needed evidence to allow for a full examination of the issues raised. I am in listening mode and will take time to consider the next steps. My focus is on supporting our public services, our local businesses and workers and families and on growing the economy for the betterment of all.”
“Again, it is very easy for Members to stand up in the Chamber and call for exclusions from rates or from this tax or the other tax. The more that you exclude, the less rates that you bring in, and the less money that you have to spend on public services and promoting the economy. Anyone who has concerns about having to pay rates on a property that, they believe, should not be of rateable value should contact their district valuer, and the district valuer will engage with them.”
“I do not have the figure in front of me, but I am sure that I will be able to supply that to the Member.”
“If there are lessons to be learned about communication, we will certainly learn them. The revaluation had been mooted for a considerable time. Indeed, as I said in my original response, businesses have argued for more regular business revaluations, and we will attempt to deliver that. If there are lessons to be learned, we will do that. If any value has come out of this afternoon, I hope that it is that colleagues in the Chamber are now more informed about how the process works and, more importantly, how they can support businesses in their area to navigate their way through the next number of weeks.”
“As I said, one of the reasons why some businesses — each case will tell its own story — have seen such a significant increase in their rateable value is that they have expanded. They have expanded because they are bringing in business and have the support of the local community and others who come in, because they present an attractive package. I wish them continued success for the future. I will play my part to support businesses as best I can. We have to have a fair and equitable rating system, and I believe that the process involved is fair and equitable.”
“There are limited powers available to the Executive around fiscal responsibilities, and the Member will be aware that I am seeking more tax-varying powers. We currently spend about a quarter of a billion pounds a year on subsidies for small and medium-sized businesses, and for businesses in general. I think that that is quite a significant investment, in fairness, into the business sector. I have set aside funding in the draft Budget to further increase business support and to broaden the scope of how businesses will qualify for that support. As I said to Mr Delargy, I also want to see a rate relief for a period for businesses that physically expand their premises and move forward.”
“I have met numerous business organisations during my tenure as Finance Minister, and I will continue to meet business organisations.”
“— "Folks, I was in the Assembly today and I learnt something. This is what we need to do, and I will support you in doing it. We need to contact the LPS and present evidence to support our case, and we will continue to move through that as well."”
“— but I hope that he is better equipped now to go back to his constituents and say —”
“I do not know whether you have listened thus far —”
“I do not know whether you are for Reform UK this week or Trump. I do not know what you are. Here is the reality, Mr Gaston: if you want public services for the people of North Antrim, taxes have to be paid. I believe that if taxes have to be paid, they should be paid in a fair and equitable manner. I believe that the reval is a fair and equitable way of doing that, with three to four opportunities for an appeals process.”
“In any society, you have to have to —. Well, perhaps in the Member's Trumpian world, you would not have to pay tax. You would just let people go about their business and make huge profits.”
“The previous two revals were published in January. I will not get into the detail of the individual cases that the Member referred to. The broader aspect of the reval has shown that, for rentable value, properties and businesses across the North have increased in value by something in the region of £230 million since the previous reval. That is actually a wee insight into the economy and how the economy is doing. From those figures, the economy is doing OK.”
“One of the biggest challenges facing businesses is the difference in the VAT. I have met trade representative bodies, along with the Economy Minister, and we have undertaken to do some work in trying to ensure that the VAT levels are closer than they will be as a result of a reduction in the South. I will continue to work with the representative bodies to pursue that.”
“For confidentiality reasons, I am not going to start trawling through the books to see why certain businesses' valuations have gone up by so much, but, if quotes such as that come back to you, I suggest that there will be a number of elements to them. One is that an extension of the building, with an increase in its physical size, would lead to a valuation increase. It may be turnover. The services that the business delivers may be popular with the public, so its premises may see an increase in footfall. The vicinity of the premises may have seen significant investment and therefore become a more attractive place to be. The only people who can tell us the story properly will be from the individual business. That story is best told to LPS.”
“Grabbing headlines will not help any business in your constituency, but the information that I have given you just might.”
“I did not ask you to laugh. I gave you my opinion. <BR /> <BR />The reality of the situation is this: when you speak to the pub owners and hotel owners in your area, you will have the information that I have given you that will assist them on the journey through this. You can meet them and make political points, if you wish, or you can say, "During Question Time, I learned this: if you're not satisfied with your valuation, you should contact LPS immediately. If you don't contact it before 1 April, you will have to make an appeal through the district valuer. If you don't agree with the outcome from the district valuer, you will have to go to the commissioner. If you don't agree with the commissioner's outcome, you will have to use the right of appeal through the tribunal". There are a number of processes.”
“No, but I am suggesting that you do not know what you are talking about. I suspect that I am not the first person to say that to you. <BR /> <BR />The issue is this —”
“The retail sector in particular, perhaps unsurprisingly, given the changing nature of our shopping trends, has seen a decrease, probably everywhere apart from Belfast. For office accommodation, valuations have remained static — they have gone down. The valuations of warehouses and other areas of manufacturing have stayed about the same.”
“<BR /> <BR />There is a proposal coming forward in England and Scotland about how exactly pubs and clubs are to be evaluated on the basis of turnover. In the Chamber, I have already committed to reflecting on the outcome of that to see whether we can learn lessons. There is therefore always potential for a process to evolve. The process used to date has proven to be fair, however. That may sound harsh to a business that has had a significant increase in its valuation, but it may be accompanied by a business with a valuation that has gone down or remained the same. It has to be fair across the board. I assure everyone who is listening that LPS is ready to engage. That is the best way forward.”
“At this stage, I am not in a position to respond to the Member on whether the statistics that he quotes are correct or incorrect. When a premises does not respond to the valuation request with the information that is asked for, that leaves the valuers in the position of having to make an estimate. That estimate is based on the size of the property; what services it provides, such as food or alcohol; and whether it has bedrooms. Corresponding valuations in the area are also considered. It is always best for a premises to produce the information that is requested to allow for a fair valuation to take place. For pubs and clubs, that is done on the basis of receipts and so on. Some information can be got from Companies House and other places.”
“As I said, you will not be able to work out the actual rates increase until the district and regional rates have been set. LPS has, however, taken on extra staff and put in place resources in the knowledge that businesses will want to speak directly to someone. I again encourage MLAs to engage with their constituents and encourage business owners who have concerns to engage directly with LPS. The service is there: LPS is expecting calls. Indeed, some of the businesses that have expressed concerns are already in contact with LPS, and I encourage anyone who has concerns to contact it.”
“The Member makes a good point. Some 70% to 75% of businesses benefit from the small business rate relief scheme. In proposals that I have brought forward, I would like to see more businesses brought into the rate relief scheme in recognition of the challenges that they face. There are already a significant number of businesses in the scheme, and we can broaden that number. In the draft Budget, I have set aside £10 million in 2026-27 directly for the purposes of supporting small-to-medium businesses through this period to meet future challenges and to take up opportunities.”
“I am reluctant to talk about individual cases. If there is an argument to be made about the rateable value of a premises — I think that, in general, the environment surrounding a premises should affect its rateable value — that should be presented to LPS. I encourage you and the constituents with whom you are working to do so before 1 April.”
“However, to date, no one has shown me how the system or process has not been properly run, and no one has come forward with an alternative and said, "No, we should do it this way". The system that we use delivers a fair and equitable rates base, but it will always present challenges to some.”
“It is clear that COVID had a major impact on the hospitality sector. That was recognised for several years in the support that it was given during the COVID pandemic, which was considerable, and the rates break that it was given during COVID, which cost significant amounts of money. However, we are no longer in COVID, as your colleague beside you will remind everyone. We have moved on. It is now time for a rates evaluation based on 2024 so that everyone pays a fair and equitable amount of rates. As I have said repeatedly, there are businesses that, as a result of significant physical change to their premises, the potential of their premises or the information that they have or have not returned at this stage, will see a change in their value this time.”
“Yes. As part of the proposals that I brought before the Assembly earlier this year, I said that I would like businesses that are expanding and building extensions etc to be given a rates break of up to a year. That is part of the proposals that I would like to bring forward. We have to encourage businesses to expand. Some premises have seen a significant increase in their valuation as a direct result of a significant physical expansion. The bigger the premises, the more rates you will pay, but I would like to see a scenario in which rates on the expansion are either reduced or removed for the first year.”
“It has doubled? I do not know what the outcome will be, but I suggest that they ask Land and Property Services for a revaluation to be done, as is their right. As I said, once 1 April kicks in, there will be another three steps that businesses can take to challenge the information. <BR /> <BR />When a revaluation is carried out, there will be changes to individual properties. Some properties will face challenges; other properties will see no change at all; and some will see lower valuations than previously. No one has yet pointed out to me how the process is faulty or flawed. The process is correct, but there may be circumstances in which individual businesses believe — it may be the case — that the revaluation will lower their rateable value outcomes, but they need the information to prove that.”
“I do not know the circumstances of the individual case, and I am reluctant to get into it. However, if your constituent is telling you that they have not made a profit for four years, and that they have provided all the information to Land and Property Services, I suggest that they go back to LPS, because, if their rateable value has increased by 50%, which, I think, is what you said —.”
“It will not, however, increase by 86%, 90% or whatever it might be, as some people have said and as has been reported in some headlines. It will increase across the board. The other thing to remember is that this is not about my Department or the Executive collecting more rates. The poundage will be adjusted, and, as a result, the same rates will be collected. Rates collection will increase only as a result of the regional rate and district rate percentages increasing.”
“A transitional revaluation relief was also offered here during the COVID pandemic. As far as I am aware, England and Scotland are carrying out a rates revaluation that is based on the market as it was on 1 April 2024, so they will reflect the COVID period as well. I emphasise the fact that the valuation that Members' local businesses will have received is not their rates bill or what their rates bill will be. Before we will understand fully what the rates bill will be, the district rate has to be set by our councils, and the regional rate has to be set by the Assembly and Executive. That will give Members the full picture of what the rates bill will be. <BR /> <BR />Of course, if the valuation increases, it is logical to say that the rates bill will increase.”
“You are telling those ratepayers who have received a valuation that is either the same or lower than it was previously that they should carry a greater rates burden than they do currently. That is what you are saying to them: "Carry a greater rates burden than you do currently".”
“There are many examples in your constituency.”
“The process has not been completed. If individual businesses are concerned about their valuation, they should approach LPS before 1 April, provide the information, and LPS will evaluate their claim. After 1 April, they will have to go through the statutory process, which, as I said, is through the district valuer, the commissioner and the right of appeal to the Lands Tribunal. I am giving you the information that you need to assist constituents who approach you. <BR /> <BR />On the broader principle, this is about the fair and equitable distribution of the rates burden across the sector. Those Members who tell me, "Go away and stop that" are actually telling that to their constituents who have got a rates valuation that is either the same or lower than it was previously —.”
“Clearly, you are not, or you would not interrupt.”
“Right. Clearly, you are not interested in hearing what the process is.”
“That needs to be the message that comes out of the Chamber today, rather than people's seeking to grab headlines that will disappear as quickly as they appeared.”
“— of the market as it was on 1 April 2024.”
“The process has been carried out properly and has brought us to the point that we are at: the point at which the hospitality industry in particular has seen an increase in its valuations in certain circumstances. That is a reflection —”
“If they bring the information forward to Land and Property Services, it will be able to evaluate it and come to a decision as to whether the valuation that they received was correct and fair. If the constituent disagrees with that decision, they can make an appeal to the district valuer. If they are not satisfied with the decision from the district valuer, they can go to the commissioner. If they are not satisfied with the decision from the commissioner, they can use their rights of appeal to the Lands Tribunal. It is not the end of the process. <BR /> <BR />When Mr O'Toole asks me whether I stand by the process, my answer is that the process has been carried out properly.”
“If we are seriously interested in helping local pubs and hotels, let us have the opportunity to debate the issues instead of trying to make a headline. <BR /> <BR />Let us look at the facts. Again, I say this: if a pub or hotel is concerned that the valuation that it has received is not correct or accurate, the first question that you should ask them is, "Have you submitted the evidence that was required by the valuators to value your property?". To ask that is not about blaming anyone; it is part of the process of helping your constituent. If they have not done that, for whatever reason — I do not blame anyone for not doing it: I just point it out — they should approach Land and Property Services before 1 April with the information.”
“Again, the Member makes a claim without backing it up with any evidence: that I come to the Chamber and blame other people for my mistakes. Would you like to take the opportunity to give me an example of that? Give me an example of when I have done that.”
“The Member cannot stand in the Chamber and say that something has clearly gone wrong without backing it up with the information.”
“A set process is in place; it is carried out by the valuators. That process has been conducted. I recommend this to the Member and to any other Member of the House: if any business approaches you and is concerned about the revaluation, the first thing that you should ask them is, "Have you provided to Land and Property Services the information requested from you, at least 16 months ago? If you have not provided it, there is still an opportunity for you to provide that information before 1 April. If you provide the information to Land and Property Services before 1 April, it will be able to look at your case to see whether there has been a fair valuation and everything has been taken into account, and there may be a change to your valuation".”
“I have the evidence. That is the difference between me and you.”