To ask the Minister of Finance for an update on his engagement with hospitality businesses in relation to the methodology used to calculate their rates.

Mr O'Dowd (The Minister of Finance)

With your permission, a LeasCheann Comhairle,

I will answer questions 1, 6 and 10 together. On 29 January 2026, I outlined my decision to stop further work on the Reval2026 process. In my meeting with the hospitality sector on 29 January, I advised that I was looking forward to engaging with the hospitality sector and other sectors on any proposals that would be brought forward. My immediate focus over the past few weeks has been on advancing the legislation required to facilitate the annual billing exercise for the rating system. Alongside that, I am focused on progressing the draft multi-year Budget, following the close of that consultation earlier this month. As I outlined in the regional rates debate in the House on 10 March, rates bills will issue this year that are based on rateable values in the current valuation list, creating certainty for businesses in respect of their 2026-27 rates bills. I will address the next steps for Reval2026 in due course.

Mr Brett

I thank the Minister for his update, and I understand that he has a busy in tray at present. Is it his view, then, that he will have a final proposal for Reval2027 or whatever we are going to call it in 2027, because nothing will be published in the remainder of this calendar year?

Mr O'Dowd

It is unlikely that anything will be published in the remainder of this calendar year. We will decide our next move in discussions with all sectors, whether that will be Reval2027 or Reval2028. However, it was right to stop, engage and then decide on a way forward.

Mr K Buchanan

Minister, in your statement on 29 January, you said:

How can a business thrive when its proposed net asset value (NAV) jumps from £66,000 to £119,000?

Mr O'Dowd

I cannot comment on any individual business. However, a significant increase in Reval suggests that there was a significant physical extension to the business, a change in the business model where different services were provided or an increase in income for that business. Those are the usual projections. Furthermore, all businesses had the benefit of the COVID moneys removed. There was a significant leap upwards for many businesses in those circumstances, but other businesses will have seen reductions. The Member will be aware that those who focused solely on the hospitality sector now want to focus on other sectors. I currently face pre-action letters from at least one sector that has concerns that, having benefited from Reval2026, it is now losing out as a result of it. It is not a simple as concentrating on one premises or one sector; it is a multifaceted equation. As I said to your colleague, the best way forward was to stop the process, take time to engage and then move forward.

Mr O'Dowd

The hospitality sector offered to bring evidence to me. I welcome the opportunity to engage with the sector on that evidence when it is presented. The detail of that evidence and the need for discussion around it will dictate how long it will be before I can evaluate it.

Miss Hargey

Minister, will you outline what current supports there are in the rating system for local businesses and what supports you plan to bring forward?

Mr O'Dowd

We currently provide our business sector with around a quarter of a billion pounds' worth of support. Across the whole tax base, 75% of non-domestic properties are currently entitled to some form of rate relief. The current small business rate relief scheme supports almost 30,000 businesses with discounts of between 20% and 50% on their rates. I proposed in my draft Budget a fund of around £10 million to increase support further for the small business sector, which will include the hospitality sector and others.