Traders in Strabane, County Tyrone, are expressing deep concern over the mounting pressures of high business rates and rising operational costs, which they fear are pushing local businesses to the brink. Many are struggling to remain afloat amidst a decline in footfall and the persistent growth of online shopping.
Key takeaways
- Business owners are meeting to discuss the significant impact of high business rates and operational expenses.
- The rise of online shopping and increased costs for staffing and utilities are cited as major challenges.
- Traders feel current rates are disproportionately high compared to the value received and the economic climate of the town.
- Calls are being made for urgent intervention, including potential rate reductions and long-term regeneration plans.
The struggle for survival
Local business owners are highlighting the increasingly difficult environment for operating in Strabane. Danny Gallagher, owner of RK’s Menswear, noted that the town is "not the same as it was back then," with online shopping significantly impacting customer numbers and overall footfall. He stated, "Between your rent, rates, electricity, broadband, and the cost of staff, it’s getting harder and harder to make ends meet."
Gallagher, who pays over £3,000 annually in business rates, expressed frustration at Strabane reportedly having the second-highest rates in Northern Ireland, even exceeding those in Belfast. He believes this makes it difficult to justify the cost when businesses are visibly struggling and closing.
Calls for regeneration and relief
Declan Hughes, owner of Gormley Shoes, echoed these sentiments, paying up to £7,000 a year in rates despite small business relief. He described the town centre as having "next to no money spent and no forward thinking" and believes an "enterprise zone" with minimal or zero rates is essential to attract new businesses and entrepreneurs.
Michael O’Neill of Floral Bliss also pointed to the numerous "shutters down" across the town as a stark indicator of the crisis. He pays around £4,000 in rates and feels the town centre is "derelict at the moment," pinning hopes on upcoming regeneration plans.
Official responses
The Department of Finance (DoF) stated that it provided approximately £250 million in rate support to nearly 30,000 businesses in the current financial year. The DoF is currently consulting on options to enhance the small business rate relief scheme and has committed to reviewing all rate support by the end of the 2027/28 rating year, aiming to address high vacancy levels and support new businesses.
Derry City and Strabane District Council acknowledged the "significant pressures facing local businesses" and highlighted its support mechanisms, including grant funding. The council noted its responsibility for only the district portion of rates and its efforts to keep increases low amidst rising costs and funding cuts. It also mentioned that about 61% of local businesses are eligible for exemptions and reliefs, alongside a multi-million-pound investment programme for the area.
