Northern Ireland businesses "beyond crisis point" as groups call for Stormont to bring in rates relief

Hospitality chiefs warn of 'mass closures' unless Stormont acts to cut mounting costs

Hospitality businesses in Northern Ireland are "beyond crisis point" and face "mass closures" unless the Stormont Executive acts to cut mounting costs, industry leaders have warned.

The sector is calling for an urgent extension of the rates holiday and other financial support measures to help businesses survive the cost-of-living crisis.

Colin Neill, chief executive of Hospitality Ulster, said the industry was facing a "perfect storm" of rising costs, falling consumer confidence and a shortage of staff.

"We are beyond crisis point now," he said. "Businesses are closing every week and we are facing mass closures if the Executive does not act."

The hospitality sector is one of the most important in the Northern Ireland economy, employing around 60,000 people and generating £2 billion in revenue each year.

However, the industry has been hit hard by the Covid-19 pandemic and the cost-of-living crisis.

Energy costs have soared in recent months, and businesses are also facing rising food and drink prices.

The rising cost of living is also putting pressure on consumers, who are cutting back on their spending on eating out.

In addition, the hospitality sector is facing a shortage of staff, due to a combination of Brexit and the pandemic.

“Businesses are doing everything they can to survive, but they need help from the government,” Neill said.

“We are calling on the Executive to extend the rates holiday and provide other financial support measures to help businesses through this difficult period.”

The Executive is currently considering a range of measures to help businesses cope with the cost-of-living crisis.

However, it is unclear whether the Executive will agree to extend the rates holiday, which is due to end in March 2023.

The hospitality sector is urging the Executive to act quickly to avoid mass closures.

"The longer the Executive delays, the more businesses will close and the more jobs will be lost," Neill said. "We need action now to save our industry."