Empty commercial property rates relief in Northern Ireland is set to end, a move projected to raise around £20 million and help tackle the issue of vacant buildings in town and city centres.
Finance Minister John O’Dowd announced the phasing out of this relief as part of a broader effort he says to encourage regeneration and reduce the “blight” caused by empty commercial properties. This signals a shift towards stricter enforcement and reassessment of business rates policy where he aims to review every form of rates relief by the end of 20207/28 rating year.
Empty property rates relief traditionally offered a financial break to business owners who held unoccupied commercial properties. Northern Ireland’s relief scheme included discounts on rates to encourage property holders to bring sites back into use. The relief scheme complements other business rate support measures, such as the Small Business Rate) Relief (SBRR), which currently offers reductions between 20% and 50% to over 30,000 businesses.
However, critics believe the relief can inadvertently encourage prolonged vacancy, hindering town centre regeneration efforts. In his speech to the Assembly earlier this week O’Dowd emphasised the need to make better use of rates funding and to incentivise active property use.
O’Dowd told the Assembly: “Small businesses are the backbone of our economy. I want to see extra help going to those businesses that provide vital employment supporting workers, families, and communities.
“The small business rate relief currently provides vital support for operating costs for around 30,000 small businesses. The support delivered under that scheme has, however, remained unchanged since 2012. I want to create a fair environment for all businesses and plan to consult before the new year, giving businesses the chance to share final views before changes are put to ministerial colleagues on enhancements to the support.”
Considerations for Businesses and Property Owners
For Northern Ireland owners and businesses, these changes mean careful planning for potential increases in rates bills for empty properties, encouraging earlier reoccupation or redevelopment to avoid full rate liability.
This latest announcement represents a significant shift for Northern Ireland businesses and understanding the implications is critical for future budgeting and strategic planning. For expert advice on the how the policy changes could affect your business contact Dunlop Heywood or email info@dunlopheywood.com