Belfast Group Counters 135% Rate Hike with £17.20 ‘John O’Dowd Pint’
A Belfast hospitality group is facing a significant financial challenge due to an impending £13,000 monthly increase in business rates. The Ringland Group, which operates several venues in the city, has voiced its concerns directly to Finance Minister John O’Dowd. To illustrate their frustration, they released a striking image of a pint of beer branded with O’Dowd’s name priced at £17.20.
Belfast Group Faces 135% Rate Hike
The Ringland Group anticipates a staggering 135% increase in its rates bill across two locations, amounting to an additional £157,000 annually. This drastic rise could threaten jobs and push the hospitality industry into a crisis.
Hospitality Industry Impacted by Rate Increases
- The Ringland Group operates the following venues:
- Amelia Hall
- The Flint Hotel
- Town Square
- The 1852 on Botanic Avenue
- The scheduled rate hikes will affect hundreds of hospitality establishments starting in April, following a recent revaluation by Land & Property Services (LPS).
The revaluation process influences how hospitality businesses are assessed for their rateable value. Unlike other non-domestic properties, which are evaluated based on their property value, hospitality enterprises are assessed based on ‘fair maintainable trade.’ This approach estimates annual turnover and has been met with criticism from various business associations, including Hospitality Ulster and the NI Hotels Federation.
Government Support and Responses
Recent developments complicate the situation. The UK Treasury announced that pubs and music venues in England will receive a 15% reduction in their business rates from April. In contrast, no similar support has been announced for Northern Ireland’s establishments.
Peter Ringland, managing director of the Ringland Group, highlighted the irony of the situation. He remarked that the same beer is now 192% more expensive due to the new rates. He elaborated that while revenues have seen some growth, inflationary costs are eroding profits. With rising supplier costs and wages, the added burden of increased rates is simply unsustainable.
Future Concerns for Local Businesses
Ringland projects that the net annual value (NAV) for the Botanic Avenue location will rise by 184%, leading to a 192% increase in rates. The group’s city centre venue will see a 116% increase. The overall financial strain could culminate in severe operational challenges and potential job losses, according to Ringland.
“We urgently need a comprehensive cross-party hospitality crisis plan,” he stated, emphasizing the dire need for action to protect local jobs and businesses.
A spokesperson for the Department of Finance defended the revaluation process, asserting that it aligns with business interests. They noted that compliance among hospitality businesses for providing turnover data remains low, with only 30% of businesses responding. The spokesperson encouraged any business disputing their rental value to submit the necessary information for consideration before the new valuation list takes effect in April 2026.
