Debate contribution: Reval2026: Impact on Hospitality Sector

Debate contribution by Mr John O'Dowd on 26 January 2026.

MLA

Mr John O'Dowd

Party at the time

Sinn Féin

Date

26 January 2026

Type

Debate contribution (made as a minister)

Business

Questions for Urgent Oral Answer

Heading

Reval2026: Impact on Hospitality Sector

Assembly identifier

Official Report component 5341069

Read the official Assembly record

Text

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. 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. 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. When Mr O'Toole asks me whether I stand by the process, my answer is that the process has been carried out properly. 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 —

— of the market as it was on 1 April 2024.

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.

What are you mumbling?

Right. Clearly, you are not interested in hearing what the process is.

Clearly, you are not, or you would not interrupt.

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. 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 —.

There are many examples in your constituency.

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".

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. Of course, if the valuation increases, it is logical to say that the rates bill will increase. 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.

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 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. 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.

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 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. 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.

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.

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.

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.

1,554 words. Text as published by the Northern Ireland Assembly.

Assessment

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Assessed 21 October 2026 at 14:31 UTC by jev-1.13.0 (requested as typesafe/jev) under rubric 2026.10-r9, methodology 1.9.

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