By 
FINANCE Minister John O’Dowd has announced this afternoon that the controversial rates revaluation process will not proceed, following a massive backlash from the North’s hospitality industry.
Last week, the Department of Finance unveiled Reval2026, after Land & Property Services (LPS) released a draft list of proposed revaluations for commercial properties.
The announcement sparked outrage across the hospitality sector, with hotels and pubs warning that their rates bills could double or even triple under the new plans.
Speaking today, Mr O’Dowd said he had listened carefully to concerns raised by businesses.
“I want our local businesses to thrive; they are the backbone of our communities,” he said.
“I am very aware of the concerns raised by businesses – particularly hotels, pubs and other hospitality businesses.
“I remain in listening mode and will now consider the next steps. My focus remains on supporting our public services, our local businesses and growing our economy.”
He added, “I think it’s the right decision to make. I might take some flak over it, but that’s okay.
“Businesses will receive rates bills based on October 2023 valuations for the next incoming year.”
Earlier this week, Omagh publican and owner of the Main Street Complex, Micky McElroy, told the Ulster Herald and We Are Tyrone that any increase would place further strain on an industry already under severe pressure.
“This rates hike penalises success, threatens jobs and will push prices up for customers,” he said.
“If nothing changes, more pubs will close. The trade is on its knees, and politicians need to stop talking and start acting.”
He added, “Rates based on turnover rather than profit is completely draconian. You can turn over millions and still lose money, yet success is being penalised at every turn.
“VAT is already punishing, and now businesses are being hit with tens of thousands in extra costs with no notice.”
Welcoming the Executive’s U-turn, Colin Neill, chief executive of Hospitality Ulster, said the sector had been brought to “crisis point”.
“At a time when hurt and anxiety were at all-time highs in the sector, it is a relief that the Minister has listened to people who are both a cornerstone of our economy and who provide an invaluable service to our society,” he said.
Mr Neill added, “Members look forward to working with the Minister to reach a solution that allows the sector to pay its fair share while developing at the same time, enabling it to contribute positively to the growth of the Northern Ireland economy.”
West Tyrone MLA and co-owner of the popular Strabane bar The Railway, Daniel McCrossan, also welcomed the U-turn but said it came only after overwhelming pressure from businesses.
“After pressure from the opposition, communities, hospitality businesses and local traders, Sinn Féin have been forced into a U-turn on their damaging rates plans,” he said.
“This didn’t happen because the Minister suddenly saw the light. It happened because people spoke up, pushed back and refused to accept a reckless hit to pubs, restaurants and local employers.
“It proves what we’ve been saying all along: when bad decisions are challenged, they can be stopped.
“But this fight isn’t over. A pause is not a solution. The pressure must stay on until there is a fair, sustainable rates system that protects local businesses, jobs and the social heart of our towns.”
