Five-year rates rise proposed for Westmeath businesses

Westmeath County Council is proposing to increase commercial rates by three per cent for each of the next five years.

The proposal is part of the council's draft budget for 2025 to be presented before councillors on Monday for discussion.

Councillors have the final say, on what budget to approve.

The commercial rates multiplier in the county has not increased since 2020 and in that period, the council said, there has been inflation of approximately 20%.

In his introduction to the draft budget, Westmeath County Council Chief Executive Barry Kehoe stated: “It is considered that the commercial rate multiplier should be increased by 3% per annum for each year up to 2029, to counter historic and future inflation.”

Rates bills are calculated by applying the rates multiplier set by the local council to the commercial rates valuation of each premises.

The council argued the commercial rates multiplier for businesses in Westmeath is the third lowest in the state and is some 20% lower than comparator counties, and that the increase would represent a modest additional contribution from business.

Mr Kehoe said the draft budget “is ambitious for this county, seeking to improve services and to continue to invest in capital improvements”.“The draft budget proposal seeks to realise additional income in a manner that will not have an overly negative impact on business and competitiveness and it is hoped and intended that the businesses in the county will benefit from the investment that the Council will make in the years ahead, especially through the capital programme and the resulting economic growth that the county will experience.”He said he was cognisant of the “myriad challenges presented to business”, and the budget included a number of initiatives to provide direct support to businesses including the provision of a grant scheme for the payment of rates. The scheme will provide for a grant equal to 9% of any rates bill up to €5,000 (a maximum grant of €450). The council said the rates bill for eight out of every ten properties is currently less than €5,000. It is also planning to set aside €150,000 in respect of the Shopfront Enhancement Grant Scheme.Although the draft budget continues to include a rates credit for vacant properties, it is proposed to reduce it from 100% to 90%.“While I am cognisant of the complexities associated with the existence of vacant properties, I believe it is only fair and proportionate that where appropriate a portion of the rates charge should be levied on vacant properties,” Mr Kehoe said.