Dáil Éireann Debate, Tuesday - 14 November 2023
172. Deputy Jim O'Callaghan asked the Minister for Enterprise, Trade and Employment when the increased-cost-of-business grant scheme will be up and running; and if the upper limit of €20,000 rates paid could be extended. [49784/23]
View answer173. Deputy Fergus O'Dowd asked the Minister for Enterprise, Trade and Employment when he expects the details of the increased cost of business grant to be published; and if he will make a statement on the matter. [49838/23]
View answerI propose to take Questions Nos. 172 and 173 together.
The Increased Cost of Business Grant (ICOB) was a measure announced as part of Budget 2024 for small and medium sized businesses who operate from a rateable premises. It is intended to be paid at a rate of up to half the enterprise’s commercial rates bill in 2023, subject to a prescribed limit. The grant is intended to aid firms but is not intended to directly compensate for all increases in wages, or other costs, for every business. It is also a grant – rather than a rates rebate or waiver – and firms should continue to pay their commercial rates as normal. It is also not intended to benefit multinational or larger firms.
In establishing the conditions for providing supports to business, it is also important to recognise that there were limited resources available to my Department to provide such supports. The total allocation for this scheme is €250 million. While it is acknowledged that many larger firms have been struggling with recent increases to various business costs, there was simply no scope to extend the ICOB to the larger cohort of business.
I and my officials are also conscious that many smaller rateable premises may have had greater difficulty negotiating the application process for previous schemes such as the TBESS. With the ICOB, however, it is envisaged that the administrative burden for firms claiming this relief will be minimal and this is one of the reasons we are targeting these firms in particular.
The technical details underpinning the ICOB scheme and the mechanism for delivering the payment are currently being developed. My officials will work together with officials from the Department of Housing, Local Government and Heritage will work together with the Local Authorities to finalise the details of the grant in the coming weeks. It is also not intended to benefit multinational or larger firm. The grant will be paid through local authorities and will be paid in the first quarter of next year.
I am conscious that there are a number of firms marginally above the threshold set out on Budget day. Nevertheless, the total allocation remains €250 million. Therefore it important to be clear that an extension of the scheme to higher ratepayers would mean a smaller grant payment for existing qualifying firms and this is something that has to be considered as the technical details are confirmed over the coming weeks.
