• Industry Update 
• Rates Revaluation  
• Energy Support 
• Upcoming Events  

Despite a reasonable Christmas period for many businesses in the hospitality sector, profitability and staffing remain the key challenges as we head into 2023, with little sign they will improve anytime soon. Our industry and your business face difficult times ahead.   

As an industry that was once told by a Minister “You are everyone’s friend, but no one’s family”, referring to the fact that responsibility and influence for our sector often falls across various government departments and can therefore be less of a priority. It can be difficult to ensure a coordinated approach to address the challenges, and just as importantly, capitalise on the opportunities the hospitality industry provides. 

With the ongoing stalemate in the Northern Ireland Assembly, the need for engagement and understanding between the business community and Government Departments at a senior level has never been more important.  
Hospitality Ulster has stepped up its direct engagement with senior Departmental officials, and whist this engagement does not always appear in the media, I want to reassure you that we are continuing to lobby for support on all fronts. Whilst also working to ensure our hospitality industry is recognised as a key economic driver and given the ability to rebuild when this crisis eventually ends.  Likewise, we continue our joint lobby with UKH and are back in Westminster meeting key stakeholders in Government to make our case.  

There is disappointing news that the UK Government has not included hospitality in an additional Energy Support scheme and as a result the support will be reduced in March 2023.A situation made worse by the fact the hospitality businesses in England will receive a 75% discount on their rates bill in the coming financial year. Whilst there is no mention of this support being applied in Northern Ireland, even though the rates support for our counter parts England generated additional monies for Northern Ireland through the Barnet Consequential. This is not just unfair, but one that could result in businesses going to the wall as they struggle to pay bills with reduced profits. 

With little or no help on the horizon, Hospitality Ulster will endeavour to provide guidance, resources and support that can help alleviate some of the challenges. Enabling our members with the best tools possible to assist with running their business. 

Despite the unpredictable period ahead, on behalf of board and staff of Hospitality Ulster I wish you a Happy New Year and thank you for your continued support. 

Colin Neill CEO 

As you may be aware the DRAFT revaluation list has now been published on the LPS website and can be accessed here: https://valuationservices.finance-ni.gov.uk/DraftSchedule/Search 

Hospitality Ulster has been successful in securing a reduction in the Fair Maintainable Trade calculation, used for calculating the NAV* upon which pubs and hotels rates bill will be based (restaurants etc are based on rentable value market data). However, we can’t say that the overall rates you will pay will go down. This will depend on the ‘penny in the pound’ set in both the Regional and District rate. But we can say that the overall NAV for both pubs and hotels has gone down for Northern Ireland as a whole.  

According to LPS, the outcomes of the revaluation include: 

• A small reduction in the total value of non-domestic properties in Northern Ireland of 0.6% compared to the current Valuation List, which is based on 2018 values. 
• Many hospitality businesses will see values going down. There is a broad decrease in the value of pubs of 15% across Northern Ireland, with Belfast currently showing a 2% decrease and outside of Belfast showing a 22% decrease.  Hotels are generally seeing a decrease of 24% on average across Northern Ireland. 
• The value of retail property is down on many high streets and shopping centres across Northern Ireland, while neighbourhood supermarkets and smaller multiple supermarkets are generally up.  The overall change in retail Net Annual Values (NAV) is a decrease of 4% on the 2020 values. 
• The office sector across Northern Ireland shows an overall increase in rateable value of 10%. 
• Warehouse and storage property is up by 12% across Northern Ireland, in Belfast by 20% and outside Belfast by 9%. 
• Manufacturing property is up by 11% across Northern Ireland. 
• Renewable energy assets are seeing an increase of on average 70% across Northern Ireland. 

It is worth noting that areas like Belfast that seen a limited return of requests for information to LPS and the valuations are heavily based on estimates and will see a smaller reduction in the draft valuation than other areas. 

Even if your NAV has come down, the rates you pay may still go up as we are already seeing local authorities talking about double digit increases of 10% / 12% in the district rate. The actual amount you will be required to pay will only be known once the Regional and District rates are published. 

*NAV_ Non domestic property in Northern Ireland is assessed based on its rental value known as the Net Annual Value (NAV). The NAV of your business property will determine the amount of rates you will have to pay. 

Rates Revaluation Webinar  

Hospitality Ulster will host a Revaluation Webinar at 2pm on 19th January, where you will get an opportunity to hear first-hand from LPS and ask questions pertaining to the Revaluation and appeals process. Registration and joining instructions will follow shortly. 

Challenging the Valuation 

• Informal review- businesses have an opportunity to ask for an informal review until the end of March. But we would advise you to respond as a matter of urgency as there may be a number of appeals and therefore a backlog 
• Formal Review- The final list will come into effect in April, Businesses will then have the option to ask for a formal review. However, businesses will be required to pay the new value whist waiting on the outcome of the review. 
• Formal Appeal- Following the formal review, business can appeal the decision 

Hospitality Ulster Accredited Supplier, Osbourne King provide a rates appeal service at a preferential rate for HU members - CLICK HERE    

How are my Rates Calculated  

Different methods are used to calculate different types of premises  

Restaurants, etc. 

• These are based on the available market data on rentable values, like shops and offices. These are usually much lower than Pub and Hotel values. 

• These are based on a calculated Rentable Value using the existing Receipts and Expenditure model. However, to take account of the impact of the pandemic LPS will subtract 20% from the estimated FMT before applying the percentage. The percentage converts the FMT to a rental value. Click to see the model: HERE 

Hotels 

• These are based on a calculated Rentable Value using the existing Receipts and Expenditure model. However, to take account of the impact of the pandemic LPS will subtract 30% from the estimated FMT before applying the percentage. The percentage converts the FMT to a rental value. Click to see the model: HERE  

The Chancellor’s new plan to slash energy support to businesses has abandoned the commitment he made in his Autumn Statement to support businesses and the hospitality sector specifically. Throughout the Covid-19 pandemic, and now the cost-of-living crisis, the hospitality sector has relied on government intervention to protect businesses in this abnormal trading environment. 

With any support only kicking in if the wholesale energy price rises above 30.2p/KWH (currently 21.1p), it is effectively a 50% increase in the wholesale price. The only consolation is that some support will be available to businesses should the wholesale price exceed 30.2p over the next 12 months. While any continued help is welcome, this new plan and the reduction of support from April will hit hospitality businesses hard as energy and food costs continue to soar. We know that more than a third of businesses have admitted they are already finding it difficult to pay their energy bills even with the existing government support. I am at a loss to understand how the government believes this meagre level of support can stave off closure and protect such a vital industry. 

The beginning of a new year should be a time for optimism and fresh opportunity, but instead this announcement by the Chancellor poses an existential threat to hospitality and has stripped away any hope business owners had for 2023. Now more than ever, we need an Executive to exhaust all options and provide the much-needed support that our hospitality sector desperately requires. 

HU In Your Backyard - 24th January, 2pm Canal Court Hotel, Newry  

The board of hospitality Ulster will be meeting in Newry on the 24th January and will hold an open session in partnership with Newry Chamber of Commerce & Trade at 2pm in the Canal Court Hotel. Which all hospitality and tourism related businesses are invited to attend.  Topics covered will include: 

• Industry Update, including the review of the Surrender Principle 
• Key Recruitment & Retention 
• Panel Discussion / Q&A 
• Open Q&A 

Please RSVP to enquiries@hospitlaityulster.org if you would like to attend. You can also submit questions in advance.   

Bibendum Wines  

Bibendum Wine - Portfolio Tasting 7th February 2023, 12:00 – 17:00 AMPM Cabaret Lounge  

To RSVP CLICK HERE 

TNI Events 

Following from Tourism NI’s recent Leaner and Greener Cost Saving Masterclass, where we explored how we can work together to reduce energy costs, we are delivering a number of live ‘Leaner and Greener’ webinars to further explore this topic:  

Water Conservation Webinar – Register Now 

Tuesday 24th January 2023, 10am – 11am 

Waste Management Webinar – Register Now 

Tuesday 7th February 2023, 10am – 11am 

Food Waste Webinar – Register Now  

Tuesday 14th March 2023, 2pm – 3pm 

Membership of Hospitality Ulster provides your business with an effective voice at every level of Government. 

You also have access to an extensive range of industry specific resources, advice and savings to support the running your business. Plus, the HU Academy Online Training Platform, a dynamic new learning experience. 

Your membership grants you access to a select group of Accredited Suppliers providing best-in-class services and products on preferential terms and pricing. 
This and much, much more. 

Take a few moments and see what HU membership can do for your business.