Large Retail Levy

The NIRC opposes the proposed Large Retail Levy.

High Streets need support to re-invigorate and regenerate. Sustainable solutions require both small and large retailers to be involved in holistic programmes. Retailing already bears too high a proportion of the Business Rates burden in Northern Ireland: we agree small retailers need some relief. But simply transferring some of that burden to larger retailers is counter-productive.

Penalising successful large retailers undermines attempts to attract inward investment through reduced Corporation Tax. It will deter future investment and individual store expansion.

Tourism, food and farming, and manufacturing will all be adversely affected as large retailers attract visitors and provide their suppliers with markets beyond Northern Ireland.

The levy is a blunt instrument, hitting as many high street retailers as out of town. It will not rebalance the Business Rates system since around 40% of the stores paying the levy are in city and town centres. Only 38% will come from out of town stores. The NIE should be encouraging job creation, not increasing the cost of doing business. The proposed levy would be a tax on jobs. A NIRC/CBI survey suggests that over 6,000 new jobs are planned over the next few years by large retailers, in addition to around 30,000 existing jobs in the NI operations of these companies. This takes no account of seasonal employment which provides short term work in busy periods.

The NIRC is campaigning for a more sustained, targeted approach to investing in town centres and providing sustainable improvements for high street retailers and businesses, including the introduction of Business Improvement Districts.