Finance Minister halts Reval 2026 following mounting pressure from hospitality sector

Inset: Northern Ireland Finance Minister John O’Dowd

The Reval 2026 process has been halted after the Finance Minister John O’Dowd announced he was stopping the revaluation amid growing concern over its impact on local businesses, particularly within the hospitality sector.

The move follows escalating warnings from industry bodies and political representatives that sharp increases in rateable values under Reval 2026 could push already-stretched businesses to the brink.

Minister cites concern for local businesses

Confirming the decision on Thursday (29 January), Minister O’Dowd said he had listened closely to concerns raised by business owners and representative groups.

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

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

“I remain in listening mode, I will now consider the next steps. My focus remains on supporting our public services, our local businesses and growing our economy.”

The announcement brings an abrupt pause to a process that would have seen new Net Annual Values (NAVs) applied from 2026, forming the basis for business rates bills across Northern Ireland.

Hospitality concerns drive political pressure

The decision comes after intense pressure from across the political spectrum, with hospitality repeatedly highlighted as one of the sectors facing the most severe increases under the draft valuations.

Hotels, pubs and accommodation providers had warned that valuation hikes—combined with the withdrawal of pandemic-era support, rising operating costs and uncertainty around rate poundages—risked forcing difficult decisions on staffing, pricing and investment.

Industry leaders have argued that NAV calculations, often based heavily on turnover, fail to reflect the reality of shrinking margins, escalating costs and softening demand.

TUV leader criticises Stormont response

Earlier on Thursday, Traditional Unionist Voice (TUV) leader Jim Allister MP issued a strongly worded statement criticising Stormont’s handling of support for hospitality.

“In contrast to remedial measures taken by Westminster for England and Wales, Stormont is lamentably failing the hospitality sector in Northern Ireland when it comes to ameliorating their monstrous rates hike.

“Hotels across my constituency, from Galgorm Resort to the Marine Hotel in Ballycastle - and all in between - are facing unbearable rate increases following the gigantic increases in their rateable values.”

Mr Allister warned that the consequences of inaction could be severe.

“The risk posed to the hospitality sector is real. Urgent action is required. Stormont will get a Barnett Consequential arising from the aid being given in GB, but will the Executive spend it on the sector, or squander it elsewhere?

“It is imperative that swift and suffice action is taken.”

UUP responds to Minister’s announcement

Ulster Unionist Economy Spokesperson Diana Armstrong MLA said:

“The recent climbdown by Finance Minister John O'Dowd on Rates Reval 2026 starkly highlights Sinn Féin's tone-deaf approach to the economy. Is this a case of Sinn Féin policy taking precedence above all else, and could such policies be acting as a deliberate wrecking ball to Northern Ireland's economy?

“The Minister must now explain why he failed to intervene at an earlier stage to recognise the devastating impact these punishing rate increases would have on core hospitality providers, including hotels, pubs, and food outlets.

“We also need clarity on whether the Minister received a briefing from Land & Property Services in advance of their findings on the Reval 2026 exercise. If so, why did he not foresee how damaging this would be to the cornerstone of hospitality in Northern Ireland?

“I hold this Minister wholly responsible for the widespread alarm he has caused across the industry. I now call on him not only to provide immediate intervention but also to assure the sector that, going forward, it will be treated as an integral part of economic growth policy, fully supported to protect livelihoods, the tourism industry, and vital supply chains.”

Relief mixed with uncertainty for businesses

While the decision to halt Reval 2026 has been welcomed by many businesses as a breathing space, uncertainty remains over what happens next and how rates reform will ultimately be addressed.

Hospitality operators have stressed that clarity is urgently needed to allow forward planning, particularly with rates bills typically issued in April and many businesses already locked into budgets and staffing commitments for the year ahead.

The sector supports tens of thousands of jobs and plays a central role in Northern Ireland’s tourism economy, with business groups warning that prolonged uncertainty risks undermining confidence and future investment.

Next steps awaited

Minister O’Dowd has indicated that further consideration will now take place, but no timeline has yet been set for revised proposals or alternative approaches.

Business organisations and political representatives are expected to continue pressing for meaningful engagement, mitigation measures and a rates system that better reflects the economic realities facing hospitality and other vulnerable sectors.