Cost of Business Increases – Impact on Newry

Cost of Business Increases – Impact on Newry

Starting today, operating costs will rise by 12.88%, driven by:
1.      National Minimum Wage: +6.7%
2.      Employers National Insurance: +1.2%
3.      Local Business Rates: +3.98% (Stormont’s regional rate pending)

Impact on Businesses

Ongoing cost hikes threaten Newry’s town centre. Last year’s 10.4% rates rise contributed to record vacancies, and this new increase will exacerbate the issue. Businesses hesitate to fill empty units due to high fixed costs, leading to further decline. The staffing cost surge is forcing reductions in employee hours, with some businesses facing unsustainable wage burdens.

Lobbying for Change

We hear your concerns and continue lobbying against these counterproductive tax increases, which disproportionately hurt retail, hospitality, professionals, and landlords. Local meetings with Councillors, MLAs, and the Local Economic Partnership will push for vacancy initiatives and a more transparent government spending model. On April 10th, I will meet Hilary Benn, Secretary of State to present concerns, linking local business rates struggles to wider UK conversations.

The Problem in NI

Unlike GB, NI businesses lack high street rate relief, despite Westminster allocating £300 million for it to Stormont. Additionally, unfair exemptions—such as 70% manufacturing relief—shift the burden disproportionately onto town centre businesses. Retail, hospitality, and professional services are punished under NI’s model, making high streets unsustainable.

Needed Reform

Newry BID advocates for modern business taxation, ensuring fair contributions across brick-and-mortar, online, and professional sectors. A rebalanced tax portfolio—including sales tax, capital value tax, and business rates reductions—would match taxation with business realities, ensuring fairness and supporting growth.

Local Change

Businesses struggle under an opaque and unfair rates system, with little influence over how revenue is spent. Years of discussion on reform have led nowhere, but urgent local engagement and fair redistribution could provide relief.

GB Debate – Lessons for NI

GB’s Transforming Business Rates initiative sets priorities:
·  Protecting High Streets
·  Encouraging Investment
·  Creating Fairer Taxation

Retail nationally contributes £7 billion in business rates, yet online giants like Amazon bypass local rates, creating an uneven playing field. NI must urgently reform its outdated, unfair property tax model before high street businesses collapse entirely.

In Better News…

We are pleased to report that the Back in Business 50% Rates Relief for taking on a vacant property has been extended for a further 12 months to 31/3/26 – a welcome initiative amongst the ever-increasing costs on town centre businesses.