Finance Minister Caoimhe Archibald will not introduce rate reductions for retail, hospitality, and leisure businesses in Fermanagh, akin to those in England and Wales.

Democratic Unionist MLA Deborah Erskine asked the Minister if there were plans to introduce an equivalent reduction in rates for these sectors across Northern Ireland. In response, Dr. Archibald explained the financial constraints that make such measures challenging.

"Over 75 per cent of all non-domestic ratepayers here currently receive some form of rates support," the Minister noted. "In the last rating year, this cost over £250 million. We have a markedly different tax base here that simply makes an approach, such as that introduced in England and Wales, unaffordable."

The Minister highlighted the limitations posed by the Barnett formula, which determines the financial allocations from the UK Treasury to Northern Ireland. "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 businesses provided in England. A conservative estimate suggests that we would need an extra £40 million on top of the Barnett consequentials to fund such a scheme."

Decisions on how these funds are allocated are made by the Executive, based on various funding priorities. The Minister also pointed out that Scotland does not have a similar scheme, and Wales had to cut the relief provided under its scheme for the fiscal year 2024/25 after attempting it in 2023/24.

"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," Dr Archibald added, indicating a broader approach to financial management rather than implementing specific rate reductions.