At the moment, vacant commercial properties are liable for just 50% of their rates.
That has contributed to large banks of vacant properties, such as the derelict buildings which form part of the proposed Tribeca project in Belfast city centre.
Finance Minister John O’Dowd.
But Finance Minister John O’Dowd has said the rates bill for vacant commercial properties will increase to 75% before the end of the current Assembly mandate in 2027.
Full rates would then be payable for non-domestic vacant properties during the next mandate.
The move follows a review of rates relief measures, with the Minister also announcing a new business growth accelerator.
Mr O’Dowd told the Assembly on Tuesday: “What was clear from the review was the need to challenge the blight of vacant properties in our villages, towns and city centres.
“It is my view work now needs to begin to elevate non-domestic vacant rating liability from 50% to 75% and then to 100%.
“I have therefore instructed my officials to take forward the policy work required to implement these changes which have the potential to unlock a further £20m of revenue between central and local government.”
He said that by the end of the 2027/28 rating year, every form of rates relief will have been reviewed.
Mr O’Dowd said that it was now him ambition to progress “enhanced support for small businesses, tackle the high level of vacancies in our towns and city centres, support businesses starting out and help accelerate business growth”.
He said here would be enhancements of small business rate relief support.
“Small businesses are the backbone of our economy. I want to see extra help going to those businesses that provide vital employment supporting workers, families, and communities.
“The small business rate relief currently provides vital support for operating costs for around 30,000 small businesses. The support delivered under that scheme has, however, remained unchanged since 2012.
“I want to create a fair environment for all businesses and plan to consult before the new year, giving businesses the chance to share final views before changes are put to ministerial colleagues on enhancements to the support.”
He added: “By taking the steps announced today, we continue to deliver a fairer, more progressive rating system—one that drives growth, supports new enterprises, and strengthens communities.
“We all know our finances are under significant pressure which is why I aim to deliver savings in parts of the rating system and redirect resources to provide additional support to those businesses that need it most.
“Delivering positive change will require buy-in, partnership working and the backing of ministerial colleagues and the Assembly.”
Glyn Roberts, chief executive of Retail NI, said: “The Minister’s proposals are a significant step forward in enhancing the various rates relief schemes, and he has clearly listened to the concerns of our members.”
News Catch Up – Tuesday 18 November
“We welcome the plans to improve small business rates relief, phase out the vacant property rate, and introduce an accelerator scheme to support businesses seeking to scale up.
“These reforms will make a meaningful contribution to tackling the dereliction crisis facing our high streets.
“However, our members continue to pay the highest business rates in the UK, and a fundamental review of the entire rating system is urgently required to address this.”
Colin Neill, chief executive of Hospitality Ulster, added: “These are small but positive steps in the right direction that will provide some breathing room for hospitality businesses that continue to face mounting pressures.”