Simon Coveney (Cork South Central, Fine Gael)
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I propose to take Questions Nos. 436 and 454 together.

I understand that the Deputies are referring to the Increased Cost of Business (ICOB) grant, which was announced as part of the Budget 2024 package and which will be particularly targeted at Small and Medium sized businesses who operate from a rateable premises. Firms who do not have a rateable premises are not within the scope of this scheme. The total allocation for the ICOB grant is €257m.

While this grant is intended to aid firms with the challenge posed by increased costs, it is not intended to directly compensate for all increases in wages, or other costs, for every business. It is important to be clear that this grant is not designed to be an offset for increases to the minimum wage. I am not planning any scheme specific to the National Minimum Wage increase.

The grant is intended to 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.

Officials in my Department are currently working with the Local Authorities on the administration of the ICOB grant. This grant will be paid through local authorities and it is intended that this will be done in the first quarter of this year. It is not intended that there be a formal application process, rather it is intended that the business will be contacted directly by the local authorities.

Eligibility for the ICOB grant 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 within a premises that is commercially 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.

I would further note that broader supports for SMEs announced in Budget 2024 included theextension of the 9% VAT rate on gas and electricity from the end of 31st October 2023 to the end of October 2024. Furthermore, the temporary excise rate reductions applying to auto diesel, petrol and marked gas oil were due to expire on 31st October 2023 and were also extended until 31st March 2024.