Greens Propose Town Subsidy Boost

The Green Party is advocating for a rates rebate of €175 million to be dispersed among approximately 100,000 small enterprises, in a bid to aid them in covering their expenses and stimulate customer traffic in town centres. Party leader and Integration Minister, Roderic O’Gorman, has detailed this proposition in letters to Finance Minister Jack Chambers and Public Expenditure Minister Paschal Donohoe, along with the other two members of the coalition.

He wishes for the initiative to become a fixture, with a local authorities distributing the relief and being reimbursed by the government. This would entail an annual expenditure of around €175 million by the government, effectively providing a subsidy to small businesses.

The party emphasised that this continued commitment is because the programme is designed with small businesses in mind, making it more focused and suitable for permanent implementation. The Green Party also views this strategy as aligning with their primary objectives of rejuvenating town centres, by enhancing customer footfall and preventing decay.

The proposed plan would allow a business paying roughly €3,000 in rates to obtain a full refund, with larger businesses being eligible for a 50% reduction. The Green Party’s proposal would imply that businesses with a ratable worth of up to €15,000 would be eligible for a full refund. For businesses valued between €15,000 and €20,000, a 50% rebate would be available. Businesses assessed over €20,000 would fall outside the scope of this scheme.

Róisín Garvey, the deputy leader of the Green Party who conceptualised the scheme, stated that the initiative would bolster smaller employers and acknowledge their contribution in attracting people to towns and villages. “Locally owned shops, eateries, and businesses represent the core of our towns and villages,” she added.

Over recent times, there has been an alarming trend of family-owned businesses going under, resulting in formerly vibrant storefronts being overtaken by large corporations or worse, becoming vacant spaces. The speaker shared that a similar refund model for rates has been successful in Scotland.

In response to various forms of adversity faced by small businesses, most recently the Covid-19 pandemic, the government has run several schemes that offer rebates on rates for small businesses forced to shut their operations. In the 2024 budget, a significant grant of €250 million was instated to buffer rising operational costs for small to medium sized businesses.

Small businesses pay rates to local authorities, which are determined by the ratable value of their property, meaning rental value minus particular expenditures. Each council sets its own local rate which is then used to calculate the final bill by multiplying it with the property’s ratable value.

An example of how the scheme works — a property in Clare with a ratable value of €14,000 would typically have a bill totaling €3,346. This would be entirely refunded under the scheme. Similarly, a property with a ratable value of €19,000 that would usually incur a bill of €4,541 would receive a rate reduction of 50%, amounting to savings of €2,270.

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