Sorry re-tail of doom and gloom must end Sector chief’s rates reform call

The Northern Ireland retail sector enjoyed an upswing in shopper footfall last month, but the industry is continuing to struggle as a result of government inaction.

That’s according to the Northern Ireland Retail Consortium which said that February’s 0.3% increase “belies a growing malaise in the industry”.

The uptick follows eight straight months of decline in footfall for retailers across the sector but Aodhan Connolly, director of the Northern Ireland Retail Consortium, warned that is no cause for celebration.

He pointed out Northern Ireland has a shop vacancy rate which is the highest of all UK regions “by some margin” and a number of other challenges. He added: “The retail industry already faces its own structural challenges, with margins shrinking, and costs growing due to a lack of decisions in public policy.

“Our archaic rates system is not fit for purpose with retail being only 12% of the economy but paying 23% of business rates.”

Mr Connolly warned if rates are raised – a possibility given an option in the Department of Finance’s Budgetary Outlook – then some shops could close and jobs will be lost.

He said a lack of decisions around a levy which has been charged to big businesses to support apprentices is also putting retailers under pressure.

Mr C o n n o l l y, b e l o w, a d d e d : “Similarly, if no decisions are taken to reform the Apprenticeship Levy here i n Northern Ireland then employers of scale will not be able to access the funds that they have been paying in for a year, with the levy becoming yet another tax on employment.”

He said responsibility for these decisions and others needs to be taken now, whether within or outside Stormont as the paralysis which has dogged Northern Ireland politics since the E xecutive was disbanded last year.

“We have consistently called for a return to devolved government.

But our industry and others need decisions made now. If those decisions have to be taken by the Secretary of State in the short term , then so be it.”

YESTERDAY

GROWTH UK Consul Michael Howells with Invest NI’S Alistair Hamilton