Relief for businesses as council agrees 5% rate rebate

Around 65% of businesses in Cork county will get a rates rebate of 5% next year, with the local authority signalling it will not make any increases in commercial charges until at least 2021.

The moves are part of a plan by the local authority to help small retailers who have suffered during the recession, and to encourage job creation.

The council has also set aside €1m to support business redevelopment in town centres which were decimated by the economic downturn.

Speaking at yesterday’s annual budget meeting Liz Barry, head of finance, said businesses paying less than €3,000 a year in rates would get a 5% rebate in 2016 and, as the economy picks up, it will be reduced by 1% yearly until 2020.

Businesses in town council areas have traditionally paid lower rates than their counterparts in the county. However, since the abolition of town councils last June, a plan has been put in place to harmonise rates countywide.

Businesses in former town council areas will not face a rate increase next year, but it’s planned to incrementally increase their payments to bring them into line with the current county rate of €74.75 by 2020. However, those businesses will not be given a 5% rebate and it will also not be given to any in arrears.

There was also good news for council tenants as the local authority has decided to absorb the Local Property Tax (LPT) itself for 2015 and is putting up additional money for heating maintenance in its housing stock.

Cllr Seamus McGrath (FF) said his party, the largest in the council, felt the budget was pro-business and pro-job creation.

Cllr Kevin Murphy (FG) said “There are some disappointments. We shouldn’t be clapping ourselves on the back for retaining services, they should be improved.”

He said roads and housing programmes in particular should have got more money and criticised FF and SF for previously voting through a 10% cut in the LPT which could have been used to provide extra funding for such services.

Cllr Des O’Grady (SF) was critical there had been no pre-budget meetings surrounding the €289m council budget for 2015.

He called for the rates rebate and town development fund to be deferred and the money diverted to increase spending on roads and services. He suggested €96,000 could also be saved by slashing payments to councillors.

Chief executive Tim Lucey said he would like to have increased the level of services but this hadn’t been possible. The budget was passed after FF and FG voted in favour, along with Independents. SF voted against.