Simon Coveney (Cork South Central, Fine Gael)
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The Government has recently signed off on an increased package of €257m for the Increased Cost of Business (ICOB) grant, which will ensure that the scheme can provide support for qualifying firms in recognition of the ongoing cost challenges faced by businesses. While the grant is intended to aid firms, it is not intended to directly compensate for all increases in wages, or other costs, for every business.

The scheme has now been extended to ratepayers paying up to €30,000 in rates. This represents a significant change from the original announcement I had made on Budget day and is in recognition of concerns relating to the abrupt cut-off point of the initial design and the need to provide support to firms who were at the margins of the scheme as initially designed.

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 flat grant of €5,000 each. No grant will be available for firms paying more than €30,000 or for firms without a rateable premises. The design of the grant scheme will ensure that smaller premises receive a higher proportional grant.

The grant will be administered by Local Authorities and provided to qualifying premises in the first quarter of 2024. Eligibility will be assessed on the basis of an SME 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.

It is not intended that there be a formal application process. Rather it is intended that premises will be contacted directly by the local authorities. It is important to 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.

My officials are currently working with the Department of Housing, Local Government and Heritage and the Local Authorities to ensure that support can be provided to SMEs in early 2024.