THE CEO of Limerick Chamber has raised serious concerns about plans by Limerick City and County Council to raise commercial rates for the upcoming year.
The Council is proposing to raise commercial rates by four per cent in 2025, which is set to be finalised in the Council’s budget meeting this Friday (November 29).
However, Limerick Chamber CEO Michelle Gallagher has said that the rate increase would impose a significant increase on existing businesses, and make Limerick a less attractive location for new business to set up.
“Businesses are not only navigating rising operational costs but are also preparing for further financial pressures, including increases in minimum wages, mandatory sick leave, and pension contributions,” the Chamber CEO said.
“Adding a sharp rise in commercial rates at this time risks undermining Limerick’s competitiveness and could discourage future investments.”
Pointing to Brexit and the Covid-19 pandemic, Ms Gallagher said that businesses across Limerick have named rising costs as their number one challenge, and that the four per cent increase mooted by the Council exceeds the recommended two per cent increase advised by the European Commission, the Central Bank, and the Department of Finance.
Ms Gallagher warned that some large businesses could see rates increases of up to €100,000 per year if the four per cent hike goes ahead, with industries such as manufacturing, hospitality, and wind energy facing average increases of between €3,500 and €13,000.
The Chamber CEO said that stricter measures are needed to discourage commercial vacancy, highlighting the amount of money owed to the Council under the vacant sites levy.
“Limerick’s future economic health depends on a balanced approach. While supporting SMEs is commendable, we cannot afford to overlook the cumulative pressures on larger employers and key industries,” she continued.
“We strongly urge the Council to halt the proposed rates increase and instead focus on fostering an environment where all businesses can thrive.
“Limerick has one of the highest commercial rates in the country and we do not want to see our well-earned brand as a place to do business damaged,” the Chamber boss beseeched.
