Whitaker Institute member Dr Gerard Turley, of the Performance Management cluster, has written a new piece for RTÉ Brainstorm. The article argues the current pandemic provides the new government an opportunity to rethink commercial rates.
Analysis: the present crisis presents a new government with an opportunity to rethink commercial rates
Commercial rates are a vital source of income for local authorities to fund local public services. With many businesses adversely affected by the Covid-19 pandemic and the subsequent lockdown, revenue from commercial rates for Ireland’s 31 local councils will be significantly lower this year that the €1.6bn projected in the 2020 budgets.
In March 2020, the government announced that commercial ratepayers impacted by the shutdown could apply to their local authority for a three-month rates deferral. In all likelihood, this would have resulted in some businesses ceasing their rates payments. By May, this temporary deferral of rates transitioned into a rates waiver for ratepayers that were forced to close due to public health requirements. At an estimated cost of €260m to be borne by the central exchequer, this decision may have to be considered again depending on the duration of the economic downturn. In England, for example, non-domestic rates were waived for small businesses for the entire 2020/21 financial year. Continue reading….
