Greens propose rate refund for small businesses

The Green Party is proposing a rates refund for more than 100,000 small businesses across the country in the coming Budget.

The move will provide a significant boost to shops, restaurants and small businesses – some of whom have pointed to recent increases in costs and competition from online retailers.

Under the proposal, small businesses who pay rates in the region of €3,000 a year would receive a complete refund, with larger businesses availing of a 50% reduction, up to a limit.

Senator Róisín Garvey, the party’s deputy leader who devised the strategy, said the move would help support small employers while also recognising the vital role they play in drawing people into towns and villages.

“Family-owned shops, restaurants and businesses form the heart of our towns and villages – they breathe life into our urban centres and are a key part of what makes each community unique. 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.

“Whether it’s in our city suburbs or the smallest village, we have to support our small businesses and give them a fighting chance of competing against the big boys. A similar rates refund has proved very effective in Scotland and would mean one less bill to worry about for such businesses.”

Green Party leader Roderic O’Gorman has written to the Taoiseach, Tánaiste and Finance ministers with the proposal, which he wants introduced on a permanent basis. The party has also proposed that local councils would be compensated by the Exchequer for the loss in revenue so that local services would not be affected.

Small businesses are charged rates by their local authority based on the “rateable valuation” of the property, which is equivalent to its rental value minus certain costs. The final bill is calculated by multiplying the rateable value by the local rate, which varies according to each council.

Under the Green Party proposal, businesses with a rateable value of up to €15,000 would qualify for a full refund on their final rates bill, while businesses with a valuation of between €15,000 and €20,000 would benefit from a 50% refund.

(For example, a property with a rateable value of €14,000 in Clare County Council which levies rates at 0.239 would normally face an annual rates bill of €3,346. Under the Green Party proposal, it would receive a full refund. A property with a rateable value of €19,000 would normally face a bill of €4,541 but would face a 50% reduction of €2,270.)