Businesses Face Rising Costs Across The Board

Now we are into April many businesses in Northern Ireland are finding that they are being hit from all sides by rising costs allied to less support from the government, a situation that could prove the final straw for many.

Increasing Costs But Less Support

It is the start of the new financial year and it is unfortunately bringing with it increased costs in such areas as wages, water bills, corporation tax and business rates. And to top this off there is now a reduction in energy bill support which is a double whammy for all concerned.

Although in England, retail, hospitality and leisure properties will get 75% rates relief, up to a cash cap of £110,000, this will not apply in Northern Ireland, as ministers are not sitting at Stormont so there is no Executive to apply rates relief here. It really couldn’t get much worse.

As a Department of Finance spokesperson put it in article on the BBC News website:

“Any decisions in relation to new rate relief measures for business in Northern Ireland would be for the secretary of state or a future executive to make, having considered the full competing priorities for public funding,”

In the same article, Alan Lowry, policy chairman of the Federation of Small Businesses in Northern Ireland, said of the rates reduction issue:

“There’s a 75% rates reduction being given to retail, hospitality and leisure in England and Wales. We need to see that over here,” he said.

“That money has been given to the Northern Ireland economy through the Barnett consequential, but we actually need to see that hitting the ground here and actually getting to our members and the other people who really need that support right now.”

Businesses Are Going To Take On More Borrowings Or They Are Going To Have To Close

He went on to talk about the options business here have, saying:

“They are either going to have to take on more borrowings with additional interest rates as they continue to increase or else they are simply going to have to close,” he said.

“If they don’t put prices up, they don’t make enough money to pay their staff, their suppliers and therefore they can’t keep the doors open. The only other option is to close their doors or put their prices up.”

We have said this before in our blogs but it is worth saying again, we desperately need a functioning Executive sitting in Stormont that can come up with some support and solutions for the business community and it cannot come swiftly enough.