Rising rates could discourage new ventures, says Larne business owner

Jonathan Montgomery, who owns The Autodock used car dealership on Pound Street, saw his non-domestic rates bill almost double from last year, jumping from £2,334 to £4,444.

Mr Montgomery was speaking after an announcement from the Department of Communities of an investment of £485,000 for Larne, Carrickfergus and Ballymena.

The news prompted broader discussion on social media about town centre revitalisation with many residents reiterating calls for lower business rates.

Writing on social media, Mr Montgomery said: “As a local business, we received a 100 percent rates increase this year. It’s difficult enough trying to provide a professional stable service to our customers without this. Why would any business want to start a new venture in Larne?”

Speaking to the Larne Times this week, Mr Montgomery added that on querying the bill, he was told the sudden increase was due to the property being re-valued for the first time in several years.

It comes at a period of rising costs for the business, which was founded in 2010. “We’re charging the same prices for labour as we did before costs went up, as we haven’t wanted to pass that on to the customer. Yet our own margins are tighter,” Mr Montgomery said.

A Department of Finance spokesperson said the amount of rates to be paid by a business depends on three factors: “These are the net annual value (NAV) of the property, which reflects its rental value; the rate poundage, which is made up of the regional rate set this year by the Secretary of State and the district rate set by the local council, and any reliefs or allowances that the business is entitled to.

"Changes to all three factors may cause a rate bill to increase from one year to the next.”

Earlier this year, Mid and East Antrim Borough Council set the district rate at 5.43 percent for households, while business rates were capped at 5.90 percent.

“NAVs are revalued on a regular basis to ensure that they reflect changes that are happening in the property market,” the spokesperson said.

"One of these revaluations took effect in April 2023, so this year’s business rate bills were based on revised values. Although the majority of properties have seen no change in their values, some will have gone up or gone down and their bill will change accordingly.

“The regional rate for non-domestic properties has been frozen since 2020, but the district rates set by all councils have seen an increase year on year. The district rate increases will have caused most rate bills to increase between 2022/23 and 2023/24. Because of the effect of the increases in district rates, a reduction in NAV will not automatically lead to a reduction in rates."

Businesses which had benefitted from the Covid rates relief scheme in 2022/23 would also have seen their rates increase between last year and this year.

Meanwhile, the Small Business Rate Relief scheme is not impacted by the absence of an Executive, the spokesperson added. “If a business’ NAV increases as a result of the revaluation this may impact their entitlement to Small Business Rates Relief, or see it reduced compared to last year.”