Letter to Finance Minister

Conor Murphy MLA Minister of Finance Claire House, 303 Airport Road Belfast BT3 9ED 20 December 2021 Dear Minister Murphy, Business Improvement Districts (BIDs) are democratically elected not-for-profit companies, which were set up on a statutory basis to benefit all of those who live in, work, or visit the areas that we represent. We collectively raise millions of pounds of revenue every year, which we reinvest at a local level to support the vibrancy of our town and city centres.

Considerable uncertainty now surrounds the future for many of our organisations as new pandemic concerns emerge, additional restrictions are introduced, and consumer behaviour changes. This is particularly acute at the current time, with significant cancellations across hospitality and with retail footfall down. Over the longer term COVID will accelerate changes in Northern Ireland’s economic landscape and use of our high streets, and additional support will be required to help businesses transition to this new environment.

BIDs actively promote health messages, along with relevant regulations, at a local level, but we recognise there are economic consequences, and that behind each small business is an owner with families and livelihoods. Many of these families, through no fault of their own, are now facing a very bleak future.

The support provided by the NI Executive over the pandemic has sheltered local business from the storm, but unfortunately much of this support has come to an end and the storm is still raging. We welcome the recent announcement of the draft budget and aim to respond to the consultation separately. However, now further resources are being released by Westminster, we would ask the Minister to consider what additional short-term measures could be provided to help local business.

And as we rebuild into 2022, through the NI Executive regional recovery plan, the following practical measures would be of particular benefit: 1. An immediate payment of the small business support grant for struggling hospitality and leisure businesses, on a similar basis to the grants paid in 2020 and 2021. Even though these businesses are not formally closed they have experienced significant cancellations and loss of business due to Covid concerns.

2. An extension from three to six months for the the 2022-23 business rate reduction for retail, hospitality, and leisure businesses. We note the Chancellor provided English businesses with a 50% reduction at the Autumn budget and we would ask that the same measures are extended to Northern Ireland.

3. Extending the Northern Ireland small business rates holiday (to those in a property with a rateable value of £5,000 or less) to March 2023 to protect the livelihood of smaller family businesses.

4. The introduction, in 2023, of a new business rates relief scheme in line with the Autumn Budget, which will support investment in property improvements so that no business will face higher business rates bills for 12 months after making ‘qualifying improvements’ to their property.

5. To continue calling on the Treasury for a short-term VAT exemption on Northern Ireland energy bills to support COVID-19 recovery. The cost-of-living crisis is severely impacting many of our citizens, causing further hardship for families and businesses during an already challenging time.

6. Meeting Treasury and bank representatives to discuss waiving or restructuring repayment rates (including extending loan terms or making interest-only payments) on Bounce Back Loans for NI independent businesses, particularly small businesses who find themselves in financial hardship.

We would be happy to provide further information to officials, particularly the real-world experience of businesses across our town and city centres, if that would be helpful.

Yours sincerely,

Chris McCracken MD, Linen Quarter BID

Blair Mayne Chair, Linen Quarter BID

Kieran Kennedy Chair, Strabane BID

Paul McErlean Chair, Cathedral Quarter BID