The Green Party is pushing for a €175 million rates refund spread across an estimated 100,000 small firms in an attempt to help them meet their costs and boost footfall in town centres.
Party leader and Minister for Integration Roderic O’Gorman has written to the two other Coalition leaders, Minister for Finance Jack Chambers and Minister for Public Expenditure Paschal Donohoe outlining the proposal, which he wants to be introduced permanently.
The measure, which would be administered via a rates waiver with local authorities recompensed by the exchequer, would commit the Government to spend in the region of €175 million annually as an effective subsidy to small businesses.
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Party sources said the commitment on an ongoing basis was being sought as the scheme is designed for small businesses and is, therefore, more targeted and can be made permanently. The Greens also believe the policy is in line with their core goals of revitalising and investing in town centres first by encouraging footfall and avoiding dereliction.
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Under the scheme, a business paying rates in the region of €3,000 would receive a complete refund, with larger businesses availing of a 50 per cent reduction.
The Greens’ proposal would mean businesses with a ratable value of up to €15,000 qualify for a full refund, while businesses with a valuation of between €15,000 and €20,000 would benefit from a 50 per cent refund. Businesses with a ratable value of more than €20,000 would not qualify for the scheme.
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Green Party deputy leader Senator Róisín Garvey, who drew up the scheme, said the move would support smaller employers and recognise their role in drawing people to towns and villages. “Family-owned shops, restaurants and businesses form the heart of our towns and villages,” she said.
“In recent years, however, we’ve seen more and more family names disappear from over shop doors to be replaced by big brands or even worse, empty spaces.” A similar rates refund has proved effective in Scotland, she said.
The Government previously ran a range of rates rebate schemes for small firms forced to close their doors during Covid, and last year rolled out a €250 million increased cost of doing business grant for small and medium-sized enterprises in Budget 2024.
Small businesses are charged rates by local authorities based on the ratable value of a property, equivalent to its rental value minus certain costs. The final bill is calculated by multiplying the ratable value by the local rate, which varies from council to council.
Under the scheme, a property with a ratable value of €14,000 in Clare, would face a bill of €3,346, which would then be refunded fully. A property with a ratable value of €19,000 would normally face a bill of €4,541 but would get a 50 per cent reduction of €2,270
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