To ask the Minister of Finance whether a transitional relief scheme will be put in place before non-domestic rates bills are issued for the financial year 2020-21.

Mr Murphy

Frequent revaluations are in line with policy directions already set by the last two Finance Ministers. Also, business organisations have long called for frequent and regular revaluations. At the last revaluation, in 2015, transitional relief was not considered necessary, even after a period of 12 years, so it would be difficult to justify it now after just five years. The transitional relief scheme that operates in Britain delays the decreased liability for those whose bills go down, as well as the increased liability for those whose bills go up. Any scheme which only worked in one way, suppressing any increases, would be very difficult to justify financially, not least alongside the very many other competing priorities facing the Executive. Therefore, I have no plans to implement a transitional relief scheme for 2020-21.

Mr Murphy

I am aware that any reval will throw up people who are satisfied. I think some 75% of retail properties will see no change or a decrease in valuation. Obviously, those who see an increase, particularly those in the hospitality sector, have an opportunity to challenge and make an appeal to Land and Property Services (LPS). There is also a factor, particularly in relation to the hospitality sector, where there is a need for information sharing with LPS about turnover. I appeal to people in the hospitality sector to do that as quickly as they can, because it allows a more accurate assessment of their rates liability. Generally, there are small business rate relief schemes for businesses, but I understand that businesses are struggling. The economic circumstances are not good, and that is why there was a significant consultation undertaken last autumn. The results are being analysed by me and my Department, and we will make decisions and bring those to the Executive in the coming time.

Mr Frew

Yes, it is correct that we should do revaluations more often to allow businesses to change in a smaller way. Given the fact that some in my constituency could well see rate increases of 600%, is it too soon to roll out a transitional relief scheme? Could it be used in order to remove the shock and trauma that businesses will face if they experience increases like that?

Mr Murphy

Again, I am not aware of the specifics that the Member mentions. I will say that there are significantly more businesses that have either no change or a reduction than have an increase. Now, if there are people who have substantial increases, they should engage with LPS. If it is people in the hospitality sector, there are agreed methodologies that use evidence from receipts and expenditure in order to come to a fair assessment of rental value. It is the rental value that is used for the rates bill. I appeal to people who are suffering as you have outlined to engage with LPS. We have conducted a review and consultation. It was an extensive consultation, and it was well responded to. That has given us much information to allow us to make an assessment. However, businesses that are suffering what they consider to be a very substantial increase need to engage with LPS to see how that can be worked through.

Mr Catney

The hospitality trade can be fickle, and those who find themselves invested in their premises will find themselves much levied upon. I agree with what Mr Frew said about increases in the sector. There must be a fairer methodology available to look at the rates, Minister. I, for one, am not sure that the current rating system is fit for purpose. I hope that the Minister will agree with me and look at ways in which to change it to make it fairer.

Mr Murphy

There are standard methodologies for assessing rental values for properties. There are different valuations for some in the hospitality sector, and, as I said, people can use evidence of receipts and expenditure to come to a fairer assessment. There has been a fairly low uptake in providing that type of information to LPS. I understand that people in the hospitality sector have good and bad times. They have quiet periods of the year and, like all businesses, are struggling. I encourage those who face particular pressures to engage, with the full information required, in order to get the fairest possible assessment of their rate liability.

Mr Nesbitt

Given that the draft Programme for Government targets the promotion of "longer, healthier, more active lives", notwithstanding rates relief in the sports sector, how do you square that with NAV increases of 30% to 40%? Belfast Indoor Bowls Club has gone up 30·35%; Banbridge Rugby Football Club has increased by 42·16%; and, perhaps, close to the Minister's heart, the Athletics Grounds in Armagh has a 21·75% NAV increase.

Mr Murphy

I understand entirely. As a visitor to the Athletics Grounds, I get asked about those matters. Properties such as sports clubs are rarely rented, so an indirect approach has to be found to establish a rental value. There is a substantial sports rate relief programme. Any part of an overall facility that is used solely for sport can get up to 80% relief, which means only 20% of the rates bill is being paid. If there is a social club or another use with a more commercial outlook, the facility is subject to full rates. I get it. We want to encourage more people to be active, but, where they use premises or facilities purely for sports, they are entitled to substantial rate relief.