Companies across a range of sectors in Northern Ireland have been thrown a lifeline by the Executive with a one-year extension to the business rates holiday.
Finance Minister Conor Murphy said the move applies to retail, newspaper production, manufacturing, hospitality, tourism, leisure, childcare and to Northern Ireland’s three main airports – Belfast City, Belfast International and City of Derry.
A total of 29,000 business will pay no rates in the 2021-2022 financial year, extending the rates holiday scheme which was brought in by the Executive in May 2020 when the impact of the Covid-19 pandemic was beginning to bite by one year.
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Exceptions to the rates relief is food stores with over 500 square metres of retail space – mostly large supermarkets - and off licenses, both businesses which have benefited from prolonged periods of lockdown.
The decision to extend the rates holiday was made following analysis by Ulster University published this month.
It said its consultations with business “underlined the critical importance of non-domestic rates relief to many firms in allowing them to stay in business”.
Conor Murphy said the £230 million package will provide continued support for businesses dealing with the impacts of the pandemic.
“Recognising that the months ahead will continue to be hugely challenging, extending the 12 months rates holiday in the hardest hit sectors will protect jobs. This package goes well beyond what has been announced in England and demonstrates the Executive’s commitment to providing certainty and support for businesses.
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“It also protects councils’ rate income as the Executive will cover the full cost of the rates holiday.”
Businesses pay rates on the properties they occupy and could have been subject to the payment despite many having to shut their doors as a result of the pandemic.
The Executive also announced targeted support for two sectors which have suffered badly from the impact of Covid.
A total of £1.175 million has been allocated to support travel agencies while a second scheme has been opened to support bus and coach operators to pay for overheads.
Funding provided through the Travel Agents Scheme will help vulnerable but viable travel agents, including self-employed homeworkers, with the cost of re-opening or keeping a business operational; with the cost of re-connecting with employees and customers and adapting customer marketing; and the cost of financial planning.
The scheme includes a flat payment of £10,000 to travel agency businesses operating from commercial premises, or £3,500 payment to self-employed travel agents working from home.
Meanwhile, the Financial Assistance Scheme is open to Private Coach and Bus operators and excludes Translink, the Education Authority, and Community Transport Providers.
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To be eligible to apply for the scheme each private Coach or Bus operator must hold a valid Northern Ireland bus operator licence and their main business activity needs to be the carriage of passengers and their luggage by road for reward.
Payments will be made based on the financial standing requirements of £8,000 for the first bus and £4,450 for each subsequent bus, or the actual loss, whichever is the lower.