The Increased Cost of Business (ICOB) grant was announced as part of the Budget 2024 package and will be particularly targeted at Small and Medium sized businesses who operate from a rateable premises. Firms who do not have a rateable premises are not within the scope of this scheme. The total allocation for the ICOB grant is €257m.
Officials in my Department are currently working with the Local Authorities on the administration of the ICOB grant to ensure that support can be provided in early 2024.
A Service Level Agreement (SLA) is currently being drafted between the Department of Enterprise, Trade and Employment and the Local Authorities, to underpin the operation of this scheme. This SLA will cover the delivery, funding, and oversight arrangements for the grant scheme.
The administration of the ICOB will be carried out by Local Authorities and it is intended that the grant will be provided to qualifying firms in the first quarter of this year. It is not intended that there be a formal application process, rather it is intended that the business will be contacted directly by the local authorities. The grant scheme has been set up in this way so as to ensure that the scheme is accessible to smaller businesses, who may have had difficulties availing of previous schemes.
Eligibility for the ICOB grant will be assessed on the basis of a firm satisfying a minimum of the below conditions:
• The business is a commercially trading business operating directly within a premises that is commercially rateable by a Local Authority.
• The business has provided confirmation of its bank details to the respective Local Authority.
• The business is rates compliant, including those businesses with a phased payment arrangement in-place.
• The business is tax compliant, and in possession of a valid Tax Registration Number.
In recognition of concerns about the abrupt cut-off point of the scheme as initially announced on Budget Day and the need to provide support to firms who were at the margins of the scheme as initially designed, I had decided to extend the ICOB grant to ratepayers paying up to €30,000 in rates.
The grant is designed to be of particular benefit to small and medium businesses who pay commercial rates. To ensure that the smallest firms see the greatest benefit, the grant will be paid at a rate of half the enterprise’s 2023 commercial rates bill, for firms paying up to €10,000 in rates. For those paying between €10,000 and €30,000 in rates, they will receive a grant of €5,000. This further ensures that smaller premises receive a higher proportional grant.
