Omagh Chamber welcomes rates U-turn after 'baffling' proposal sparks business backlash

THE President of Omagh Chamber of Commerce has welcomed a dramatic U-turn by Northern Ireland’s Finance Minister on a controversial rates revaluation scheme, saying the original proposal would have been “brutal” for town centres already under severe pressure.

John Edgar said the Chamber was relieved that “common sense eventually prevailed” after days of mounting opposition from businesses across the north.

“If the rates increase had gone ahead it would have been brutal for everyone and would have killed town centres everywhere,” Mr Edgar said.

“As we all know, rates in Omagh are disproportionately higher than in most places, so the idea of raising them again was baffling, to be honest.”

Mr Edgar confirmed the Omagh Chamber was part of the High Street Alliance opposing the proposed increases, working alongside Retail NI and Hospitality Ulster, who had been campaigning behind the scenes not just to block the revaluation, but to secure an overall reduction in business rates.

“Thankfully common sense prevailed,” he said.

He added that the episode should serve as a lesson for the Minister.

“It really doesn’t take an economist or a genius to understand this, especially in the cost-of-living crisis we are in,” Mr Edgar said.

“Raising costs again was going to put people out of business. When you add one and one together, you generally get two. It’s difficult to understand why others don’t see that.

“My message would be: Minister, please don’t explore this option again.”

The comments come after Finance Minister John O’Dowd announced last week he would halt the proposed Reval 2026 scheme just days after it was unveiled, following an intense backlash from business owners, particularly in the hospitality sector.

Announcing the decision, Mr O’Dowd said he had listened to concerns raised by businesses.

“I want our local businesses to thrive; they are the backbone of our communities,” he said.

“I have listened carefully and I am very aware of the concerns raised by businesses - particularly hotels, pubs and other hospitality businesses.”

The proposed revaluation would have seen many businesses facing sharply increased rate bills after property values were reassessed, prompting warnings that it could force closures across already struggling high streets.

The U-turn was widely welcomed within Tyrone’s hospitality sector.

Hospitality Ulster Chief Executive Colin Neill described the announcement as “a relief”, saying the proposals would have been the “death knell” for the industry.

NI Chamber also welcomed the decision, with Chief Executive Suzanne Wylie saying member businesses had been “deeply concerned about the scale of potential cost increases” during a prolonged cost-of-doing-business crisis.

However, Alliance Party Deputy Leader Eóin Tennyson criticised the handling of the issue, branding the Minister’s approach “cack-handed” and calling for a full, independent review of the business rates system.

For Omagh Chamber, the focus now turns to ensuring the issue is not revisited.

Businesses, Mr Edgar warned, cannot withstand further shocks.

“Town centres like Omagh are hanging on by a thread,” he said. “This time, common sense won - but it shouldn’t have taken a crisis to get there.”