Businesses in two of the county’s largest towns have hit out over a third consecutive rates increase, at a time when they say they’re desperately trying to get back on their feet.
As part of a rates harmonisation process begun in 2016, businesses in Ennis and Kilrush will see rises of almost 3 and 5% respectively in 2018.
Following the abolition of Town Councils, Clare County Council was required to enter into a process of harmonisation, in which the rate paid by businesses in Ennis and Kilrush was brought into line with the rest of Clare.
This began in 2016, and while the Council had the option of prolonging the process over the course of a decade, it was decided it would instead be carried out over 3 years.
This, the local authority says, allowed it introduce incentives for businesses who paid their rates in full, on time, through initiatives such as rates rebates, and these incentives remain in place.
Councillors have now voted through a third consecutive increase with Ennis businesses facing a rise of 2.89% in 2018.
Diarmuid McMahon of Sherry Fitzgerald McMahon says this has led to frustration and anger for many.
While in Kilrush, businesses will pay an additional 4.47% in rates.
Paul Edson of the Family Store believes rates rises have already hit businesses, and he thinks there’s been no benefit from their increased bills.
Clare County Council claims that prolonging the process of harmonising rates would have prevented businesses from availing of incentives.
But Independent Councillor James Breen, an opponent of this third rise, believes the process should have been paused to give businesses a chance to feel the affects of the improving economy.
Statement From Clare County Council
Under the Local Government Reform Act 2014, Ennis and Kilrush Town Councils were abolished along with all other town councils in the country. As the commercial rate in the former town areas was not the same as the county rate, the Local Government Act 2014 required that the council harmonise the rates and have one rate for the county within 10 years of 2015. The harmonisation process began with the adoption of the county council budget in 2016.
If Clare County Council was to achieve harmonisation over a longer period of time, the additional income received from rates would not be sufficient to provide any incentives to reduce the burden on rate payers, especially in the small and medium categories. The impact of that approach would have resulted in a greater rates burden in the longer term. In addition the harmonisation process will result in all properties throughout the county with the same rateable valuation paying the same rates which is not the case at present.
Clare County Council introduced a scheme in 2016 whereby a payment grant is provided to ratepayers when the rates liability is fully paid within the required timeframe.
In 2017 approximately 80% of the properties in Ennis and 87% of the properties in Kilrush have rates costs of €5,000 or less per annum. Consequently the payment grant substantially reduces the impact of any rates increase for the majority of rate payers in these areas.
