Businesses face first rates hike in seven years

City businesses are facing a hike in commercial rates for the first time in seven years.

The increased charges will add over €3,000 a year to some rates’ bills in pre-Christmas bombshell that will anger businesses that are only now beginning to recover from the economic recession.

The Galway City Tribune understands that commercial rates are to be increased by 3% in the City Council’s budget for 2016, which will be voted on by elected members on November 9.

The increased rate will be proposed by Council Chief Executive Brendan McGrath, who will argue the measure will generate an additional €1 million or more.

Mr McGrath will argue that the additional money is needed so as to plug gaps in the Council’s budget and to finance initiatives such as the European Capital of Culture 2020 bid.

The hike will amount to an average increase of €8 per week or around €400 per year for businesses. However, it could be as much as €3,000 or more for those businesses, including in the hospitality sector, that pay higher rates. The new proposed rate would kick-in in January.

This proposed new 3% increase will be the first hike since scores of businesses went to the wall during the country’s worst economic crisis.

For more on the Council’s 2016 Budget, see this week’s Galway City Tribune