LARGE RETAILERS in the North could be hit with an additional rates bill of up to £85,000 a year for each store if a new proposal to rebalance the system in favour of small businesses gets the green light.
The North’s Minister for Finance believes larger retailers should pay higher rates in the form of a 20 per cent levy to help small firms survive the downturn.
The British supermarket giant Tesco would be one of the companies that could be worst affected. It could face a potential levy of about £1.5 million per annum on its 18 stores.
The levy is just one of a number of proposals contained in a new consultation paper on the rating of commercial properties, which was launched by Sammy Wilson yesterday.
The proposed levy would apply to all retail properties with a rateable value of £500,000 or more. According to officials, this would bring the average annual rate bill for affected properties to around £515,000.
It is estimated that 26 companies or 77 properties would be forced to pay the additional rates bill. If the proposal goes ahead, however, the department estimates that about 9,000 small businesses would benefit from a rates cut worth about £730 a year.
Mr Wilson said the Northern Ireland Executive wanted to create the right conditions for a “sustained economic recovery”.
“The proposals paper are about co-existence in the market place, not favouring small over large businesses. The downturn has been very difficult for most sectors of the economy but some have fared better than others during this period. The large retail sector is a case in point. I think it is right that additional small businesses get help and that this should be funded by asking the largest retailers to pay more.”
The Northern Ireland Independent Retail Trade Association welcomed the document. Chief executive Glyn Roberts said the proposals would be “welcomed by independent retailers”.
However, Ben Collins of the Royal Institution of Chartered Surveyors said it could cost jobs. “Such a levy could lead to large retailers opting for other locations,” he added.
