High Streets are often described as being in transition, driven by the continued shift to e-commerce and the subsequent drop in consumer footfall to towns and cities. But this increasingly familiar narrative risks obscuring a much more serious reality. While some High Streets, including Belfast City Centre, are transitioning towards a more experience and entertainment-led offer, others are in decline, characterised by vacancy, dereliction, criminality and an increasingly narrow mix of businesses.

This is not simply an economic problem. High streets are places where people meet, work, socialise and communities connect. When they decline, the consequences are felt beyond the balance sheets of individual businesses. The visible dereliction of town centres has become part of a wider political conversation about opportunity and whether our economy is working for everyone.

The small business has historically been an important ladder of opportunity, allowing people from all backgrounds to build livelihoods and create employment. When the cost of occupying premises becomes prohibitive, the ladder becomes harder to climb.

The question policymakers need to confront is: can we expect businesses to invest in the high street, while also asking them to operate in a taxation framework that places an unfair burden on bricks and mortar?

A question of balance and fairness

There is a debate to be had about how much revenue government needs to raise from businesses. That debate should not be avoided.  However, the problem facing high streets isn’t the concept of taxation itself, but the lack of balance and equity between e-commerce businesses VS the bricks and mortar model.

The commercial rates system that was introduced in 1991 was rooted in a very different economic environment, yet it remains in place. For these businesses, the rates burden is a high fixed cost, endured regardless of trading conditions. And the impact is evident. The latest statistics from the Department for Communities put vacancy rates across Northern Ireland at about 23 per cent, representing nearly 5,000 unoccupied non-domestic units. Along with many independent shops, pubs, and cafes, well-known brands including River Island, Claire’s, and Poundland, all shut up shop in 2025 in major towns and cities such as Bangor, Lisburn, Omagh and Belfast.

We need to remember that the high street is not simply a collection of commercial properties. It is a valuable ecosystem that we need to support. Physical premises contribute to the social DNA of our communities yet, these businesses are carrying a disproportionate burden despite creating jobs, attracting footfall, and contributing to the success of our towns and cities.

Since 2018, LQ BID has delivered around £5 million of public realm improvements across more than 50 projects. We understand that successful places require sustained investment from both the public and private sectors. Rates are an important source of revenue for public services. The reform narrative must recognise the financial realities facing the Executive, but the Executive has a responsibility to support bricks and mortar businesses.  

Real Rates Reform is gaining momentum across Great Britain with a campaign spearheaded by organisations such as Heart of London Business Alliance, UKHospitality, and the Association of Town and City Management. Northern Ireland should not simply observe from the sidelines. We need serious, evidence-led discussion about what our rates system is intended to achieve and whether it is delivering. 

The campaign proposes a Hybrid Business Rate to retain a property-based tax for high street businesses, but at a reduced level, while introducing a modest tax on qualifying online sales. The recommendation is to reduce commercial rates to 34.8p, a reduction of more than one third in rates liabilities. This would mean that a coffee shop in the Linen Quarter that has an annual rates bill of about £30,000 would see a reduction to £20,000. This saving would provide greater scope for the business to invest in the physical commercial experience.

Land & Property services also need to look at the scope of rates. At present over half of commercial premises benefit from exemptions and discounts, putting a higher burden on the remaining - predominantly high street - businesses. Reducing the poundage on commercial rates creates room to widen the scope, by removing exemptions and discounts. This creates a fairer and more balanced system for everyone.

The growth of online retail is perhaps the clearest example of where the balance has shifted beyond what is fair. Online sales now account for 29 per cent of retail activity in the UK, while businesses with physical premises carry property-related costs that their digital-only competitors do not. This is not an argument against online businesses. In fact, whilst introducing a new tax on online sales, the proposal recommends exemptions for online transactions that drive footfall, such as click and collect orders, and ticket sales. 

Many countries in Europe use a combination of fixed property tax and a variable revenue tax - a fairer, more sustainable way to manage the ups and downs of the business cycle. Digital commerce is an established and important part of our economy. The question is whether our taxation system can continue to place the onus exclusively on physical property, when commercial activity now takes place beyond it?

The time for change

As a placemaking organisation, supporting vibrancy in our city is a primary objective. We are championing the Real Rates Reform campaign to build a stronger, more united voice and influence decision-makers here to approve meaningful reform. Hardworking businesses need a system that reflects the realities of the challenges they face in today's economy, and we are determined to fight for the future of our high streets.

Alongside Belfast Chamber, LQ BID initiated a meeting with the Minister for Communities and, supported by the Association of Town and City Management, we have also now met with Land and Property Services - both important opportunities to raise the issue.

In addition to the proposal to reduce the rates burden, we are also calling for a shift in the treatment of newly constructed commercial buildings in Northern Ireland. Currently there is only a 90-day window before rates become payable on new commercial property.  We believe if rates payments begin when a property becomes occupied, it would deliver greater investor confidence, and new investment is essential if we are to create a high-street experience that consumers will support.

Commercial property, and the high street, continues to show incredible resilience, but resilience isn't enough. It’s time for critical change. We recognise that rates reform will not solve every challenge facing our high streets. It must be bolstered by greater action across planning, transport, skills, and public realm improvement. But taxation is one of the levers available to policymakers to make an immediate and real difference.

LQ BID’s strategic focus is to create an environment where people want to live, work, and visit, and our commitment to Real Rates Reform is about more than reducing costs. This is about creating the conditions where physical businesses are rewarded for the contribution they make to the character and the economic success of our towns and cities.

LQ BID will host a public event for business owners in the coming months to discuss the campaign and its progress. For more information about the campaign and join the campaign, visit www.realratesreform.co.uk 

Chris McCracken is Managing Director of the Linen Quarter BID, working to support businesses and drive investment in Belfast city centre. He is also the Northern Ireland Chair of the Association of Town and City Management (ATCM) and an elected Councillor for Ards & North Down Borough Council. Chris is a strong advocate for the future of our high streets, campaigning for policy changes including Real Rates Reform, to help create thriving, sustainable places for businesses and communities.