Retail Ireland has expressed concern about an impending rise in the commercial rates bill for many retailers, arising from the ongoing revaluation of commercial properties by the Valuations Office.
New research carried out on behalf of the Ibec group on the national commercial property valuation programme, Reval 2017, highlights that the majority of retailers are facing increases to their rates bills for the forthcoming year.
According to Retail Ireland, in some local authority areas, close to 60% of retailers will see increases in their rates bills.
Thomas Burke, Director of Retail Ireland commented, “This data shows that there has been, and continues to be, a significant shift of the rates burden towards the retail sector through this revaluations process.
“It appears that retailers are outside of the reported claims that 60% of businesses will see a rates reduction following revaluation. It is the opposite in fact, with far more losing out. This clearly shows that the retail sector is being targeted to allow discounts to be applied to other sectors.”
Kilkenny, South Dublin And Westmeath Paying Lion’s Share
Retail Ireland’s research on the revaluation process in Kilkenny, South Dublin and Westmeath revealed that in 2018, 14,500 retailers across these three local authority areas will be liable to pay €37 million.
It also found that businesses in South Dublin alone account for 52% approximately of the total local authority income, with the retail sector operating in this area accounting for 12% of the total council’s budget.
Burke added, "Retailers are increasingly paying a greater share of the total commercial rates bill, a position which threatens to undermine the competitiveness of the sector and places jobs and future investment in danger.
"The contribution from the retail sector in Kilkenny, Westmeath and South Dublin is greater than the commercial rates income of 21 local authorities. In South Dublin, for example, retailers contribute €28 million in commercial rates, which is 12% of the total local authority annual budget. It also the same amount that all businesses, including shops, in neighbouring Wicklow pay each year."
He concluded with, "We call on Government to urgently begin a process to review the impact commercial rates are having on local businesses, and to begin a meaningful discussion with affected parties about how the current broken system can be reformed to ensure retailers don’t continue to shoulder an unfair and undue burden."
© 2017 - Checkout Magazine by Jenny Whelan