KCC say they won't be implementing any new schemes to ease commercial rates on new businesses

Kildare County Council have outlined why they won't be reducing the commercial rates that new businesses are being slapped with, despite the closure of a number of small businesses across the county.

The council outlined their stance at a meeting of Kildare County Council earlier in the week when Cllr Mark Lynch requested that the council develops a new business commercial rates grant scheme that would encourage small in indigenous start-ups on main streets in villages or towns in an attempt to foster new start-ups within the county, with consideration given to a rates holiday for up to a two year period.

The council replied by saying that they are dependent on commercial rates for a large portion of their yearly income, and that any scheme that would help to ease the burden of commercial rates would need the approval of the Minister for Local Government.

"The basis for setting and charging commercial rates is set down in statute and regulation. The annual rate on valuation is set by the council each year at its Budget meeting. The valuation of relevant property is set by the Valuation Office," read the council's report.

"Kildare County Council is dependent on commercial rates income to fund the services it provides. Commercial rates income accounts for 38% of all Kildare County Council income in 2017. Any scheme to alleviate rates requires the sanction of the Minister for Local Government as outlined in Section 2 of the Local Government (Rates) Act 1970 and The Local Government (Rates) (Waiver) Regulations 1970. Records indicate that submissions of “rates alleviation schemes” by other local authorities seeking ministerial sanction have been refused.

"Proposals similar to this have been discussed by the Finance Committee and the Economic Development SPC and it has been agreed that a Business Support and Development Fund of €150,000 in the 2017 Budget to support and encourage business rather than alleviate rates."

The council also outlined how changes to the Local Government Reform Act 2014 means that new businesses occupying a retail space would not have to pay any commercial rates rolling over from the previous occupier.

"It would be recommended subject to available resources to continue to provide a Business Support and Development Fund in the 2018 Budget. The use of which could be a matter for discussion by the Planning, Economic Development and Enterprise Support SPC.

"There have also been changes included in the Local Government Reform Act 2014, where subsequent occupier legislation Section 14 (2) of the Local Government Act 1946 has been repealed and the provisions no longer apply. Thus new occupiers are liable for rates from date of occupation only and will not be responsible for rates outstanding from previous occupiers. The responsibility for unpaid rates remains with the previous occupier or owner."