In an announcement this afternoon, Mr O’Dowd said it was “the right decision to make”.
Last week the Department of Finance announced Reval2026, as Land & Property Services (LPS) released a draft list of revaluations for commercial properties.
There was a public outcry as some hotels and pubs would see their rates bills doubling or even tripling.
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Mr O’Dowd said today: “I want our local businesses to thrive; they are the backbone of our communities.
“I have listened carefully and I am very aware of the concerns raised by businesses – particularly hotels, pubs and other hospitality businesses.
“I remain in listening mode, I 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 ok.
“Businesses will receive rates bills based off of October 2023 for the next incoming year.”
The Finance Minister confirmed a cost will be incurred to public finances as a result of the U-turn but was unable to confirm what that bill might be.
He said: “There’s obviously a cost involved in preparing and gathering the data and the information to publish a draft list.
“I believe that draft list will still be a benefit to the information gathered for that draft list will still be a benefit for whatever next step we take.
“So I think it’s too early to say what the actual cost has been to date. But I believe that the work that has been carried out will be a benefit as we move forward.”
Opposition leader Matthew O’Toole welcomed the temporary freeze following huge backlash from the hospitality sector.
However, he branded the “farcical” attempt to shift blame on to the UK government.
The SDLP MLA added: “I hope that businesses will soon have the clarity they need, but there is nothing to stop something else coming down the tracks in the next few weeks that will paralyse this place, waved through ambivalently by an Executive that is asleep at the wheel.”
Meanwhile, TUV leader Jim Allister also embraced the move but warned the reversal demonstrates “how detached Stormont has become from the real economy”.
“It took a public backlash to force the Minister into ‘listening mode;. That is not good governance; it is reactive politics,” Mr Allister added.
Colin Neill, chief executive of Hospitality Ulster, welcomed the news to a sector which had reached “crisis point.”
He was scheduled to discuss matters further with the Finance Minister on Thursday afternoon.
Mr Neil is seeking the engagement of “independent body” to ensure a repeat does not occur.
“It is proof that local politicians, having a local Minister, makes things easier,” he said. “It’ll be a huge relief for our industry, a huge relief for those businesses, because behind every business is a family, and the families were worried. So we now want to engage and move forward positively with the Minister and find a solution so this doesn’t happen again.
“I’ve had people basically saying they’ll have to shut, they’ll have to lay off staff. This was a huge increase, something in the degree of an extra 16.5 million from the hospitality sector.
“That’s over 600 jobs if you took it on living wage. This is a huge, I think it’s good for the Minister, good for us, good for the economy.
But Ulster Unionist MLA Diana Armstrong said Mr O’Dowd’s “climbdown” showed Sinn Fein’s “tone-deaf approach to the economy”.
“The Minister must now explain why he failed to intervene at an earlier stage to recognise the devastating impact these punishing rate increases would have on core hospitality providers, including hotels, pubs, and food outlets,” she added.
“We also need clarity on whether the Minister received a briefing from Land & Property Services in advance of their findings on the Reval 2026 exercise. If so, why did he not foresee how damaging this would be to the cornerstone of hospitality in Northern Ireland?
“I hold this Minister wholly responsible for the widespread alarm he has caused across the industry.”
DUP Finance spokesperson Diana Forsythe said: “While pausing the process is welcome, it also raises serious questions about the Minister’s judgement in allowing things to progress to this stage. Any future proposals must be fair, transparent and not place unjustified additional burdens on businesses already struggling to stay afloat.
NI Chamber chief executive Suzanne Wylie
Suzanne Wylie, chief executive of NI Chamber, welcomed the decision not to proceed with the revaluation proposals.
“Our member businesses, particularly those in the hospitality sector, have been deeply concerned about the scale of potential cost increases during this protracted cost of doing business crisis.
“Earlier this week, NI Chamber published economic survey results showing intensifying cost pressures across every sector.
“In light of today’s decision, we will now write to the Minister to seek clarity on next steps and request a meeting to discuss the urgent issue of the cost of doing business.