Massive rates hikes prompt call for system overhaul

SOME pub owners and independent traders are facing massive hikes to their business rates this April, with the chief executive of Retail NI claiming that the system is “broken”.

Glyn Roberts, who heads up the organisation that represents independent retailers across the North, said that he was “gravely concerned” about the recent rates revaluation process carried out by the Land and Property Service (LPS).

As part of the ‘Reval2020’ process, the LPS has released draft valuations for all 5,800 businesses in the Fermanagh and Omagh area. These new valuations will be used to calculate business rates bills from April 2020.

According to draft figures published online by LPS, one local pub, the Halfway House in Tattyreagh, several miles outside Omagh, will see its rateable value increase by an incredible 250 per-cent, while the rateable value of another, the Blind Cobbler in Omagh’s John Street, will rise by more than 130 per-cent.

Several other pubs in Omagh are also facing increases in their rateable values, along with many independent retailers, including those operating petrol stations. But some larger supermarkets in the town, such as Asda and Dunnes Stores, will be receiving smaller rates bills from April after decreases in their rateable values.

Speaking this week, Mr Roberts said it was fair to say that the hospitality sector and independent retailers had been “hardest hit” by the revaluation process.

Describing it as “blatantly unfair”, the chief executive said this is the biggest issue for the newly-formed Stormont Executive to deal with, adding that Retail NI had a lot of ideas to put to the new Finance Minister, Sinn Féin’s Conor Murphy.

“This needs urgently fixed,” he said. “Independent retailers are the mainstay of town centres. The current business rates system is a drag on the economy as a whole.”

According to the online figures, the Halfway House’s current Net Annual Value (NAV) – which determines the amount of rates property owners will have to pay – is £5,000. But, under Reval2020, this will jump by 250 per-cent to £17,500.

The draft valuation list also reveals that the Blind Cobbler is facing a massive hike in its rates bill. The Reval2020 NAV is given as £52,000, a rise of £22,500 – or 131.11 per-cent – on its current NAV of £22,500.

While popular Omagh nightspot Sally’s will see no change in its current NAV of £160,000, other pubs in the town that will see a rise in their NAV include McCann’s (12.5 per-cent) and Annie’s Bar (25 per-cent).

Meanwhile, the Asda supermarket on Dromore Road in Omagh will see a drop of just over 11 per-cent in its rateable value. Its current NAV (Net Annual Value) is £693,500, while the Reval2020 NAV is £613,500 – a decrease of £80,000.

In contrast, from this April, Classic Service Station, located across the road from Asda, is going to see its rateable value significantly rise by 40.28 per-cent.

Its current NAV of £57,800 will go up by £23,200 to £80,800.