Debate contribution: Business Growth Accelerator and Vacant Rating Reform

Debate contribution by Mr John O'Dowd on 29 June 2026.

MLA

Mr John O'Dowd

Party at the time

Sinn Féin

Date

29 June 2026

Type

Debate contribution (made as a minister)

Business

Ministerial Statements

Heading

Business Growth Accelerator and Vacant Rating Reform

Assembly identifier

Official Report component 5644706

Read the official Assembly record

Text

Where businesses feel that their circumstances have changed to such a degree that their rates cannot be met, there are opportunities. For example, they can engage directly with their local evaluator. There is a process in place for doing that. I have announced today a number of programmes to continue the small business rate relief scheme. It is about raising revenue for reinvestment in a fair and equitable way. We can therefore look at imaginative schemes. One of the barriers for the entire Executive at the moment is the lack of resources to be able to invest. First, we need a proper and fair funding settlement from the Government, and, secondly, we need to look at the measures that we have at hand, one of which is the rating system. If we use it in a fair and equitable way to raise revenue, we can develop schemes beyond what is currently available to businesses that are affected by extreme weather conditions, or whatever it may be, but we need the funds in order to do that.

Of course we will give due regard to the consultation responses, regardless of the sector or individual from which they come. We are open to ideas on how to improve our rating system and how we use it to raise revenue and increase our economic activity and business support. The two things go hand in hand.

Rates are a tax. I understand that nobody likes paying tax. Perhaps a better way of putting it is that they certainly do not like paying unfair tax. What I am trying to do is to ensure that our rating system is fair and equitable. Around 30,000 businesses receive support from the small business rate relief scheme. That is a huge number. Under my proposals, and through the utilisation of the £10 million that has been set aside in the draft Budget, we could probably increase that number to 33,000. We provide around a quarter of a billion pounds in rate relief to small to medium-sized enterprises in particular and to other businesses. There are measures afoot. I want to use the proposals that I have set out today to allow businesses to think about physical expansion. Through the accelerator scheme, a business can expand and not have a rates liability for x amount of time. A year has been suggested, but it may be longer than that. Doing that will allow a business to stabilise after its initial investment in construction works etc. Yes, we have supports in place. Can we do more? Let us look and see. I am open to proposals on all those matters, but they have to be fair and equitable, and we have to make decisions.

As I announced today, there is a requirement for us to go through a consultation process, engage on the responses to it and prepare a report, which then has to go to the Executive. The accelerator scheme will, I believe, require primary legislation. The vacant property measure will probably require regulations. All that would have to be followed through. With goodwill, we could have the vacant property measure pushed through before the end of the mandate. The other measure may require primary legislative change.

It will play an important role in that. One of the reasons why I am looking to move the non-domestic vacant rating policy from 50% to 75% to 100% is to encourage businesses that are not generating any income at the moment to be brought back into viability. Now, that will present challenges. It will depend on how the market is at the time. There is an argument to be made that, where we raise revenue through that measure, we should look at a grant scheme or support scheme for businesses — particularly those that require physical investment in their structure — to bring them back into usable shape, whether that be for business purposes or non-business purposes.

656 words. Text as published by the Northern Ireland Assembly.

Assessment

Not flagged

Jev’s structured answers

Assessed 21 October 2026 at 15:58 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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