Warning NI small businesses could miss out on £650m financial windfall
BUSINESSES in Northern Ireland could miss out on a financial windfall from today’s Budget due to the Stormont impasse, an MLA has warned.
Chancellor Philip Hammond is due to unveil a £1.5bn package to support the UK’s struggling high street today.
He is expected to use his Budget statement to announce £900m in business rates relief for almost 500,000 small retailers.
A £650m fund will help transform high streets, improving transport access and turning empty shops into homes and offices.
Northern Ireland should receive a slice through the Barnett formula, which determines
how money is allocated from the Treasury to the regions.
However, SDLP MLA Pat Catney said the lack of an Executive could affect how the money impacts local businesses.
“The Exchequer is set to give £1.5bn to small high street stores as part of the Budget allocation, where Northern Ireland should receive a percentage of this through the Barnett formula, yet businesses here can’t avail of this without an Executive in place,” he said.
“Once again there will be a disparity between businesses in Northern Ireland and those across the water because of the democratic deficit here.”
The UK’s high streets have taken a battering in recent months, with major retailers struggling as shoppers shift online and firms railing against rising business rates.
On Thursday, Debenhams became the latest big-name high street retailer to announce store closures.
The business rates relief being offered by Mr Hammond is aimed at around 496,000 small retailers and will knock a third off their bills.