Northern Ireland’s Finance Minister has made a dramatic climbdown and halted a controversial rates revaluation scheme just days after it was announced.

The u-turn follows a backlash from businesses across the north, particularly from the hospitality sector, after it was first trailed last week.

Speaking about the policy shift on Thursday, Minister John O’Dowd said: “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 u-turn follows days of backlash from business owners over the scheme which saw many companies having the value of their properties increased and facing a dramatic potential rates hike.

The scrapping of the scheme was welcomed from with Northern Ireland’s hospitality sector.

Hospitality Ulster Chief Executive Colin Neill described the news as “a relief”.

“Hospitality Ulster welcomes today’s announcement by the Finance Minister John O’Dowd that he intends to halt Reval 2026 and review the process that brought the hospitality to this crisis point,” he said.

“At a time when hurt and anxiety were at all-time highs in the sector, it is a relief that the Minister has listened to the people who are both a cornerstone of our economy and who provide an invaluable service to our society. This demonstrates the value of having locally elected politicians that can intervene.

“Hospitality’s opposition to Reval 2026 has never been based on an unwillingness to contribute our fair share to rates revenue, but about communicating that what was proposed was not fair and would have been the death knell for our industry.

“We now look forward to working with the Minister to come to a solution that allows the sector to pay its fair share and develop at the same time, allowing the sector to contribute positively to the growth of the Northern Ireland economy. Hospitality stands ready to play its part; we now await the Minister’s next steps and further clarity on what this means for our industry.”

The body, which represents the hospitality sector in Northern Ireland had hours earlier warned the Finance Minister that ‘no action will be off the table’ if he did not intervene to mitigate the impact of the latest rates revaluation on the industry.

The news was also welcomed by the Northern Ireland chamber.

Suzanne Wylie, Chief Executive, NI Chamber said: “NI Chamber welcomes the Finance Minister’s decision not to proceed with the Reval 2026 proposals. Our member businesses, particularly those in the hospitality sector, have been deeply concerned about the scale of potential cost increases during this protracted cost of doing business crisis.”

However, Alliance Party Deputy Leader Eóin Tennyson said the u-turn outlined the Minister’s ‘cack-handed’ approach to the economy.

“This will offer some much-needed relief for businesses, but also lays bare how cack-handed and muddled the Minister’s approach has been from the beginning,” he said.

“Many hospitality businesses were left contemplating their future because Sinn Féin ploughed ahead with a move that was clearly unworkable. The overwhelming public outcry, from businesses and people right across our society, has now forced them to listen.

“It was completely out of touch to think such dramatic rate hikes could be imposed on an already struggling sector without any planned relief, support package or even a basic understanding of the pressures facing hospitality.

“This stopping of the process must now be used to fix the underlying problems. We need a full, independent review of the business rates system, proper sectoral relief and a clear plan to restore confidence and stability.

“Businesses deserve a system that is fair, progressive and which supports economic growth.”