Commercial rate increases cause concern in Kenmare

Rates for one business in 2024 have shot up around 50% compared to the previous year to just under €5,000.

“Businesses, already struggling to stay afloat amidst the rise of online commerce and changing consumer habits, are now being burdened with unsustainable financial obligations,” said Dr John Goode, director of a small art gallery in the town called Mill Cove.

Several businesses operating in the tourist town Kenmare have voiced concern about eye-watering commercial rates charged by Kerry County Council.

Dr John Goode, director of a small art gallery in the town called Mill Cove, said his rates for 2024 have shot up around 50% compared to the previous year to just under €5,000.

“Businesses, already struggling to stay afloat amidst the rise of online commerce and changing consumer habits, are now being burdened with unsustainable financial obligations,” said Mr Goode.

Nearly 100 business operators showed up to a meeting recently organised by Mr Goode to discuss rising commercial rates.

Mr Goode has since urged Kerry County Council to reevaluate its commercial rates “to ensure they are fair and sustainable, as well as implementing targeted incentives to encourage entrepreneurship and innovation.” 

He continued: “The assumption that the resilience of Kenmare's retail and hospitality sector will weather these unprecedented hikes is dangerously misguided.”

The commercial rate for another business in the town, the Lansdowne Hotel, surged from €15,296 last year to €63,700 for this year, according to a document seen by the Irish Examiner.

Brothers Francis and John Brennan operated the Lansdowne Hotel under a parent company called Beechside until the hotel was then transferred to Hanley Hospitality after Patrick Hanley and his wife Aileen entered into a deal to buy it from the Brennans’ last year.

Kerry County Council were contacted for comment but did not respond before publication.

Retail and hospitality groups have put pressure on government in recent weeks to address the rising cost of doing business as insolvency reports published by professional services firms Deloitte and PwC forecast a rise in closures this year.

Many lobbying groups have called for a reduction to the hospitality Vat from 13.5% to 9%, which was implemented during the pandemic.

In February, Finance Minister Michael McGrath reduced the interest rate on the remaining debt warehoused by companies during the pandemic, which is currently just over €1bn, to 0% in an effort to ease the pressure of costs on businesses.

Meanwhile, the Government has encouraged businesses to apply for the for the Increased Cost of Business (ICOB) grant before the May 1 deadline.

In the last budget, the Government announced a €250m package to tackle the high cost of doing business in the Republic amid inflationary and interest rate pressures.

Kerry County Council, funded through Department of Enterprise, Trade and Employment, said it will manage the rollout of the grant to qualifying businesses in the area.

Eligible businesses will receive a once-off grant payment.

The amount of the grant payable to eligible businesses is based on the value of the commercial rates bill the business received in 2023.

However, Kerry County Council said the grant “is not a commercial rates waiver and businesses should continue to pay their commercial rates bill as normal.” 

Commercial rates are a property-based source of income for local authorities.

The income from commercial rates underpins the entire range of services provided by local authorities.