Businesses Cannot Make Up Shortfall in Funding From Reduced Local Property Tax

Chambers Ireland and Cork Chamber have today (10/06/14) called on Local Authorities to ensure that any reduction in the Local Property Tax (LPT) is not subsidised by a corresponding increase in commercial rates. The call comes following Cork County Councillors’ vote to cut their LPT by 15%.

Speaking this afternoon, Chambers Ireland Chief Executive Ian Talbot said “The introduction of the Local Property Tax was designed to move the Local Authority funding system to a fair and equitable ‘user pays’ system. If Councils choose to reduce their LPT by 15% then they must not look to businesses, already the single largest funder of Local Authorities, to make up the shortfall. Businesses already pay high levels of commercial rates and cannot take any more hits if we are to support growth and job creation. We urge any Local Authority that chooses to reduce the LPT to ensure they have adequate funding in place to accommodate this.”

Conor Healy, Chief Executive of Cork Chamber continued “It is vitally important that the commitment to economic development and a positive environment for job creation are maintained. Cork Chamber is calling on the Councils to properly plan any reductions in the LPT rates to ensure that shortfalls created are not sought through an increase in commercial rates for already struggling businesses in the region. We would further call for a commitment from the councils that the 1% ring fencing of rates collected is maintained for economic development and job creation.”