Dáil Éireann Debate, Thursday - 7 March 2024
213. Deputy Ged Nash asked the Minister for Enterprise, Trade and Employment when the increased cost of business grant will be paid out to eligible businesses; how the scheme will be administered; and if he will make a statement on the matter. [11243/24]
View answerThe Increased Cost of Business Grant will mainly provide support to many small and medium enterprises operating from rateable premises. A total of €257m has been allocated for the purposes of the grant.
The administration of the Increased Cost of Business Grant (ICOB) will be undertaken in accordance with a Service Level Agreement (SLA) between the Department of Enterprise, Trade and Employment and the Local Authorities. This SLA will cover the delivery, funding, and oversight arrangements for the grant scheme. The details of this SLA have been finalised and agreed with the Local Authorities.
The Local Authorities will be carrying out the administration of the ICOB grant and it is intended that eligible ratepayers will begin to receive payment early this year. It is not intended that there be a formal application process, rather it is intended that qualifying businesses 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. Local Authorities are in the process of setting up a system in order to pay out this grant and will write to businesses in the coming weeks.
Once contacted by their Local Authority, it will then be up to businesses to choose to participate in the scheme, subject to the eligibility criteria. Businesses must verify through self-declaration their eligibility to the Local Authority on the basis of satisfying the following 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.
While the ICOB is not intended to directly compensate for all increases in wages, or other costs, for every business, it is expected the once-off relief will provide a welcome cash injection of up to €5,000 for many small businesses across the country. It is important to note that the ICOB grant does not constitute a commercial rates waiver and all firms should continue to pay their commercial rates as normal. Furthermore, vacant premises are not eligible for the scheme.
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.
