Laois council expects to get €14.5 m in rates from business in 2021 as Government confirms multi-million euro Covid-19 bail out for 2020

County hall has planned rates income from shops and other businesses in Laois rise to nearly €14.5 million next year even though the bulk of what was due in 2020 has been waived because of Covid-19 with the Government stepping in to help the council make up the shortfall.

The Minister for Housing, Local Government and Heritage Darragh O’Brien TD and Minister of State with responsibility for Planning and Local Government Peter Burke TD have written to the Chief Executive of Laois County Council as the second tranche of commercial rates rebates were issued to local authorities across the country.

A statement said Laois County Council has so far received €3,950,413 to cover the lost income with further payments to issue. The council budgeted to receive just over €14 million in rates from the local business since January 2020.

But the taxpayer could be facing a bigger bill in 2021 if the Government decides to waive rates charged on businesses again next year due to the impact of Covid-19 on business. 

Last week Laois County Councillors adopted the 2021 budget which the Chief Executive Mr John Mulholland assured would mean services would not be cut. The budget states that the net amount of rates to be levied in Laois next year will be €14,495,092. 

Updating the Leinster Express after the latest rebate was confirmed Mr Mulholland expects more money to be allocated.

"This is in accordance with our expectations and for quarter four we anticipate further support bring it to €6 million for 2020," he said.

Laois Offaly TD Brian Stanley raised the issue of the rates with the Taoiseach Micheál Martin in the Dáil last week. He said he has been contacted by local businesses who are worried about next year due to the loss of trade particularly in the run up to Christmas due to the Level 5 measures.

"I told the Taoiseach that businesses and local authorities need certainty around rates going into 2021 due to the financial impact of the Covid-19," he said.

Laois Offaly TD and Minister of State at the Department of Finance Seán Fleming welcomed the rebate which he said was part of the Government’s support for businesses during the Covid-19 crisis. He said waive rats had a major knock-on effect on the finances of all local authorities throughout the country.

 "The Government gave a clear commitment to compensate local authorities in respect of the fall-off in commercial rates. The funding payable to all local authorities has been cleared and the payment to Laois County Council is very substantial in terms of their finances.

"The guarantee of this funding ensured the members of Laois County Council were able to pass a very comprehensive set of estimates of expenditure for next year. This helps ensure that Laois County Council will be able to provide a full range of services for the people of Laois in the coming year," said Minister Fleming.

Other counties have also received rebates. Kilkenny has received nearly €5.8 million so far while Kildare has been give to €14.6 to cover the amount it has lost out on. Carlow is getting €4,291,000 to make of for income lost due to the virus. 

As part of the July Stimulus programme, a €600m commercial rates waiver was announced for businesses impacted by COVID-19. This covered 100% of commercial rates from the end of March to the end of September. As part of Budget 2021 a further €300m commercial rates waiver was announced to cover rates to the end of the year.

Commenting Minister O’Brien said councils would not lose out.

“The €900m commercial rates waiver will mean that the local government sector won’t be at a loss or having to make ‘either’ ‘or’ decisions when it comes to providing vital services for people.

“We are very aware that commercial rates are the backbone of local authority income which means that services such as playgrounds, sports facilities and library services can keep operating. We want to ensure that local authorities continue their important work and Government have not been and will not be found wanting in respect to support for the sector.

“We will continue to work with our colleague Michael McGrath TD, Minister for Public Expenditure and Reform, to support local authorities meet costs and income losses that have arisen as a direct consequence of the pandemic. I would like to take this opportunity to commend all our local authorities for the exceptional leadership they have shown through their response to the Covid-19 pandemic," he said.

Minister Peter Burke praised councils.

“The COVID-19 pandemic has impacted on every facet of life and the response of local government to date has been phenomenal. Whether through the Community Call Fora or adapting their library services so people could continue to enjoy them, local authorities have adapted swiftly and innovatively to the situation.

“As local authorities engage in and complete their 2021 budgetary process they do so in the knowledge that Government has supported them with a commitment of just under one billion euro in commercial rates rebates. As Minister with special responsibility for local government I will continue to advocate for and work on behalf of local authorities across the country to ensure they can continue to provide key services at the heart of our communities,” he concluded.