Rate reduction of 2 per cent proposed for businesses in Dún Laoghaire-Rathdown

Businesses in Dún Laoghaire-Rathdown will see their rates reduced by 2 per cent next year, if councillors accept budget proposals recommended by the local authority’s chief executive.

However, those with vacant commercial properties will be required to pay 25 per cent of the rates due, instead of getting a 100 per cent rebate as in previous years.

In her first draft budget at Dún Laoghaire-Rathdown County Council, Philomena Poole has recommended a cut in business rates costing the council €1.6 million. Rates are property-based taxes levied on the occupiers of commercial or industrial properties.

The reduction will fall short of the ambitious 15 per cent cut sought by some business groups in the county, which argued rates should come down in line with the 15 per cent reduction in local property tax agreed by councillors earlier this year. The cut, however, will be welcomed by some organisations.

Ms Poole, who took over in Dún Laoghaire this year, said the council was conscious of the difficult environment within which many businesses continued to operate.

On the requirement for businesses to pay 25 per cent rates on vacant properties, she said it would incentivise the marketing and occupation of vacant premises.

Dún Laoghaire-Rathdown expects to raise more than €51.4 million in property tax next year, according to the draft budget. The county, which has the highest compliance rate in the State, will retain 80 per cent of the local property tax collected there. Almost €10.7 million of it will go to an equalisation fund for other local authorities.

Ms Poole said the financial plan for 2015 would be the first expansionary budget in the county since 2008 with expenditure totalling more than €164 million.