Dáil Éireann Debate, Thursday - 7 December 2023
190. Deputy Brendan Smith asked the Minister for Enterprise, Trade and Employment to outline the measures that will be made available to assist small and medium enterprises with the challenges that have arisen for such businesses due to increased costs; and if he will make a statement on the matter. [54397/23]
Amharc ar fhreagraThe Increased Cost of Business (ICOB) grant is a once off payment for small and medium businesses operating out of a rateable premises. It is important that I be clear that this scheme is a once-off grant aid provision and not a commercial rates waiver. It will have no bearing on the commercial rates paid by firms. It will be administered by Local Authorities and provided to qualifying premises in the first quarter of 2024.This payment is not intended to compensate for all of the increased costs but the money will provide a welcome cash injection for many businesses. We will continue to monitor what remains a challenging businesses environment and continue to support our businesses.
This week, the Government signed off on an increased package of €257 million for the grant. The Government decision also incorporates changes to the parameters of the scheme. The changes to the scheme announced this week extend the scheme to ratepayers paying up to €30,000 in rates, in recognition of concerns raised with me about the abrupt cut-off point of the scheme as announced and the need to provide support firms who were at the margins.
In order 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.
No grant will be available for firms paying more than €30,000. Firms who do not have a rateable premises are not within scope of this grant. It is not intended that there be a formal application process. Rather it is intended that each premises will be contacted directly by the local authorities.
This will be a demand led scheme, as eligibility will be assessed on the basis of an applicant satisfying a minimum of the below conditions:
• The business is a commercially trading business operating directly from a premises that is 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.
My officials are currently working with the Local Authorities on the administration of the ICOB grant to ensure that support can be provided early next year.
