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LOCAL hospitality businesses have warned that looming changes to the rates system could force closures, cost jobs and drive up prices for customers.
From April 2026, non-domestic properties across Northern Ireland will be revalued to calculate future business rates bills.
The process, known as Reval 2026, will update the Net Annual Value (NAV) of premises using rental evidence from April 2024, replacing valuations set during the pandemic.
Business owners whose NAV rises above the national average increase of around 15 per-cent fear they could face substantial financial pressures once district and regional rates are set by local councils and the Executive.
While the full impact will not be known until then, hospitality operators say the revaluation is already causing serious concern.
‘Threatens jobs’
Michael McElroy, owner of Omagh’s Main Street Entertainment Complex, said any increase would add further strain to an industry already under 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.”
Mr McElroy accused Stormont of failing to pass on support provided elsewhere in the UK and said funding intended to ease pressure on hospitality had been ‘gobbled up’
“Rates based on turnover rather than profit is completely draconian,” he said. “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.”
He warned that the impact would be felt well beyond business owners.
“Our rates increase could cost one premium job or two standard jobs,” he said. “Eventually it’s the customer who pays, because we’ll have to raise prices. Our margins are already tight.”
Mr McElroy also criticised what he described as a failure by politicians to act.
“The next thing you’ll see in the press is another pub closing, followed by politicians saying it was ‘much loved’,” he said. “Much loved, maybe… but much neglected by government. I’m calling on councillors again: Do something. Don’t just talk. Walk the walk, even if you have to walk all the way to Stormont.”
Another local publican, Colm Broderick, described the revaluation as a ‘stealth tax’ on established businesses. “This appears designed to hit successful businesses hardest,” he said. “It will force price rises and customers will suffer. This is incredibly disheartening and it’s deeply unfair that businesses are being targeted simply for doing well.”
‘Madness’
SDLP MLA Daniel McCrossan also criticised the planned changes, calling them ‘total madness’ and warning they could push pubs, cafés, hotels and restaurants over the edge.
“At a time when hospitality businesses are hanging on by their fingertips, this is a dangerous tipping point,” he said.
“The Executive cannot claim to support town centres while forcing this through.”
Defending the revaluation, Angela McGrath, Commissioner of Valuation for Northern Ireland, said the process is intended to distribute rates more fairly using up-to-date rental evidence.
“Businesses are currently paying rates based on rental levels from October 2021, during the pandemic,” she said. “Reval 2026 updates this using April 2024 evidence.
“The majority of properties are expected to see little or no change.”
She encouraged ratepayers to review their valuations online and submit any relevant information before the new list takes effect in April 2026.
