Dáil Éireann Debate, Thursday - 25 April 2024
171. Deputy Éamon Ó Cuív asked the Minister for Enterprise, Trade and Employment why premises whose rates valuation was revised in the past year and increased as a result, as part of the national rates revision that this ongoing, are not eligible for a grant of 50% of the new rate this year subject to the other criteria appertaining to the scheme; and if he will make a statement on the matter. [18643/24]
View answerAs you are aware, the Increased Cost of Business (ICOB) grant scheme was announced as part of Budget 2024, as a vital measure for small and medium businesses. The scheme is a once off grant and is not a rates waiver and businesses should continue to pay their Local Authority rates as normal.
In order to design the scheme officials in my Department consulted with a range of Government and enterprise stakeholders and used data for the number of businesses who paid rates in 2023. A budget of €257 million was then allocated for the scheme based on this analysis.
Following this analysis, it was determined that the best available option, in keeping with the intention to ensure that smaller businesses benefit proportionally the most, would be to provide grant aid equivalent to 50% of a premises commercial rates bill, for premises paying less than €10,000 in rates. Above this rate, a fixed grant of €5,000 would apply to all premises paying between €10,000 and €30,000 in rates, with no grant aid for premises paying more than €30,000 in rates. The scheme has no bearing on the commercial rates paid by firms.
The 2024 rate figures were not available at the time of the design of the scheme and in order for the scheme to be up and running without further delay, 2023 figures were used and the budget for the scheme was allocated on that basis.
