Price increases a 'worry' as Leitrim businesses face higher rates next year
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“What will be the cost of a pack of scones or a loaf of bread or an apple tart in a few years' time?“
Leitrim Businesses are facing a rate increase of 3.5% heading into next year, with a proposal on the table at Monday’s meeting of Leitrim County Council.
The proposal will be voted on during next week's budget meeting of Leitrim County Council in Carrick-on-Shannon.
The vote is expected to receive overwhelming support from councillors as the county council looks to generate more funding within the county for projects and initiatives within Leitrim.
Leitrim County Council budget will increase next year as a budget allocation of around €70 million for next year is proposed.
The increase is part of a wider plan, already agreed by the county council, to increase the rates by 20% between 2025 and 2030. The move comes as the council's plans aim at revitalising towns and promoting tourism in the county.
“A 3.5% increase we can live with, if and when it keeps going up, I am just afraid of what is the cost of a loaf of bread in five years' time,” says Pascal Gillard, who owns Jinnys Cafe in Drumshanbo alongside his wife Sinead (Jinny) Gillard.
“None of us want increasing costs, but like it's inevitable that you're going to have rates increases. The fear for small businesses is: will the customer be able to afford our product in the next few years. So I don't know if that's answering your question or not.”
The move has drawn criticism from some business people in Leitrim, but he says that increases in business rates are acceptable because he feels there is significant reinvestment in local businesses by Leitrim County Council.
“That's one thing I genuinely have to say from even talking to people within other counties, you know, that I think Leitrim has done so much. Like, look at our town in Drumshambo, and look what that Blueway has done.”
However, the spiralling cost of doing business is a worry, he says.
“You kind of feel you get squeezed on everything, and so it's hard,” he said.
“We have a premium product, and it was dearer than the basic product. And now with all the increases, like we're having to absorb so much of the increases to keep it at a level where it's reasonably priced for the customer. That's probably my biggest worry going forward.”