Commercial rates to increase in Limerick as local authority budget for 2023 is adopted

COMMERCIAL rates in Limerick are to increase next year after elected members of the local authority agreed a total budget of almost €1bn.

The budget for 2023, which was agreed following a lengthy meeting this Friday, is being delivered to fund growth and expand Council services.

Limerick City and County Council says the revenue budget was prepared amidst the backdrop of an accelerating gap between the cost base and the income necessary to maintain services at current levels.

While commercial rates are set to rise by 4.5%, there are no increases proposed to parking charges, cemetery charges, housing rents, planning fees, fire charges or fees at recycling centres.

"While there is an increase in commercial rates, the impact on small and medium enterprises will be offset for as many as possible, with an increase in the Small and Medium Business Enterprise Support Scheme. The commercial rate increase of 4.5% is being offset by a grant percentage increase from 9% to 13.5%," said a spokesperson.

The monies raised from the rate increase will be ring-fenced to provide extra services, while also enhancing projects already undertaken by the Council.

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The total estimated expenditure included in the Draft Budget for 2023 amounts to €905.62 million, a decrease of €46.61 million on the adopted figure for 2022.

However, nearly three-quarters of the budget (€674 million) is for HAP Shared Services, which Limerick City and County Council runs on behalf of all 31 local authorities across Ireland.

The remaining €231m of the budget has been allocated to fund day-to-day services for the citizens of Limerick city and county. 

Commenting following the budget meeting, Mayor Francis Foley said: “The 2023 budget was prepared in an environment which has seen an escalation in energy costs and other input costs which are critical to the delivery of local services. New amenities, recently completed, now require a maintenance budget while financial supports are also needed for existing amenities all of which have witnessed reductions in income and significant increases in costs. The budget is balanced despite cost acceleration arising from existing and projected future economic growth”

Dr Pat Daly, Chief Executive of Limerick City and County Council added: "A significant challenge in the preparation of this draft Budget has been the acceleration of the gap between our cost base and the income necessary to bridge this gap and to maintain services at current levels. There has been persistent upward pressure on our cost base arising from inflation and energy costs."

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“The financial demands on the Council`s revenue budget necessitated by the combined factors of cost increases  can only be sustained through realistic income increases from across all major income sources. In this context, budget 2023 has included a 4.5% increase in Commercial Rates. However, in order to shield the SME sector from this increase, the budget reflects an enhanced SME scheme providing a rebate of 13.5% of their warrant subject to a limit of €1,500. The monies from the increase will be ring-fenced to maintain, and in some cases, increase the delivery of local services," he said

Dr Daly says the overall objective of the budget preparation for 2023 has been again to maintain existing services to a high standard and ensure that Limerick City and County Council fulfils its statutory and regulatory obligations in an environment of increased costs and limited funding.