A REDUCTION in rates for struggling retail, hospitality and leisure businesses is "simply unaffordable", the Minister of Finance has said. 

DUP MLA, Deborah Erskine recently asked Dr. Caoimhe Archibald if she planned to equivalent reduction in rates for retail, hospitality and leisure business, similar to those in England and Wales.

Minister Archibald said that she does not plan to introduce such a reduction in rates, but said that over 75 per cent of all non-domestic ratepayers in NI currently receive some form of rates support, totalling £250m. 

Due to this, further rates rate reductions are unaffordable. 

"We have a markedly different taxbase here that simply makes an approach, such as that introduced in England and Wales, unaffordable," the Minister said. 

"The Barnett consequential that the Executive received in respect of that scheme would fall well short of funding the reduction in rates for retail, hospitality and leisure business provided in England. 

"A conservative estimate would suggest that we would need an extra £40m on top of the Barnett consequentials to fund such a scheme. Decisions on Barnett allocations are determined by the Executive based on funding priorities."

She continued: "Scotland does not have the retail, hospitality and leisure scheme at all, and Wales tried to do it in 2023/24 and then had to cut the relief provided under it for 2024/25.

"My focus is on looking at how our system can be realigned to reflect and fund the Executive priorities in conjunction with wider Budget sustainability work."