REAL RATES REFORM: LQ BID IS FIGHTING FOR FUTURE OF THE HIGH STREET

The BID is championing a UK-wide campaign in Northern Ireland to reduce the burden on brick-and-mortar premises

The current rates system is placing an unsustainable burden on businesses and threatening the future of the high street. Latest statistics from the Department for Communities put vacancy rates across Northern Ireland at about 23 per cent, representing nearly 5,000 unoccupied non-domestic units. Along with independent businesses across shops, pubs, and cafes, well-known brands including River Island, Claire’s, and Poundland, all shut up shop in 2025 in cost-saving measures, affecting the economic performance and social DNA of towns and cities such as Bangor, Lisburn, Omagh and Belfast.

A new UK-wide campaign, Real Rates Reform, highlights how non-domestic rates are threatening the future of the high street. Its innovative proposal is for a Hybrid Business Rate which, if approved, would retain a property-based tax at a significantly reduced level for high street businesses, and introduce a modest digital tax on all online sales subject to VAT to bring better balance to the system.

Specifically, the proposal calls for a reduction in commercial rates to 34.8p, the same level in place when the current system was introduced in 1990/91, reduce rates liabilities by more than one third.

LQ BID is advocating for a similar standard to be introduced in Northern Ireland to ensure the concerns of businesses here are also heard.

LQ BID’s Chair, and Facilities and Workplace Director at Kainos, Eamon Butler, has played a key role in championing the campaign locally, representing the BID alongside Belfast Chamber at a meeting with the Minister for Finance and at the official launch of the Real Rates Reform campaign in London.

Eamon said, “The current business rates system no longer reflects the realities of today’s economy. In recent years, a dynamic tension has developed between digital commerce and town centres, and the businesses that invest in physical premises are carrying a disproportionate burden despite creating jobs, attracting footfall, and contributing to the long-term success of our towns and cities.

“Reform is needed to give businesses the confidence to invest in their premises to protect their offering, and jobs into the future. Commercial property, and the high street, continues to show incredible resilience, but resilience isn’t enough. It’s time for critical change and Northern Ireland needs to echo efforts happening across the water.”

LQ BID and the Association of Town and City Management initiated a meeting with Land and Property Services in July to raise the issue locally.

Chris McCracken, Managing Director of LQ BID said, “As a placemaking organisation, supporting vibrancy in our city centre is one of our primary objectives. Through this campaign, we aim to build a stronger, more united voice to influence decision makers here in Northern Ireland to approve meaningful reform.

“We are determined to fight for the future of our high streets, especially in Belfast where our members are based. Hardworking businesses need a system that reflects the realities of the challenges they face in today’s economy. That means reducing the rising rates burden to a fairer and more sustainable level for our local businesses, while continuing to respect that Government needs to raise money from business taxation.

“The reasonable and viable solution is a one-third cut in commercial property rates in Northern Ireland. A coffee shop in the Linen Quarter would face an annual rates bill of about £30,000, but under the new proposal that could become a more sustainable £20,000.”

Online sales account for 29 per cent of total retail sales in the UK, according to the latest figures from the Office for National Statistics. To encourage continued investment in towns and cities, the proposal, whilst introducing a new tax on online sales, recommends exemptions for any online transactions that drive footfall to physical locations, such as click and collect orders, and ticket sales.

Chris continued, “Many countries in Europe use a combination of fixed property tax and a variable revenue tax – a fairer, more sustainable way to manage the ups and downs of the business cycle. The proposed Hybrid Business Rate supports businesses that invest in physical premises regardless of whether they trade online. Any business with a physical property would benefit from lower non-domestic rates. It rewards investment that supports jobs, strengthens local communities, and creates vibrancy across high streets.”

Alongside reform for existing premises, LQ BID is also calling on Land and Property Services to end the 90-day window for new construction.

Chris explained, “At present, commercial buildings become liable for rates after 90 days, even if unoccupied. As a result, developers are unable to initiate schemes until a tenant is secured, creating a significant barrier to new construction. If rates were payable when buildings became occupied, it would inject confidence and protect continued investment in new commercial property.”

Since 2018, LQ BID has delivered £5 million of public realm improvements across over 50 projects.

Chris concluded, “Our strategic focus continues to support an environment where people want to live, work, and visit. Our commitment to Real Rates Reform is about more than reducing costs, it is about creating conditions where physical businesses can continue to contribute to the character and success of our towns and cities.”

Founding members of the Real Rates Reform Alliance include Heart of London Business Alliance, UKHospitality, Association of Town and City Management, The Institute of Directors, Music Venue Trust and the British Independent Retailers Association.

LQ BID will host a public event for business owners in the coming months to discuss the campaign and its progress. For more information about the campaign and join the Alliance, visit www.realratesreform.co.uk

ENDS

For more information and interview requests contact Navigator Blue:

Olivia Robinson | o.robinson@navigatorblue.com | 077 0331 9987

Notes to Editors

Photocaption: Pictured L-R: Eamon Butler Chair of LQ BID, Ros Morgan Heart of London, and Ojay McDonald ATCM, at the launch of the Real Rates Reform campaign in London on July 14.