Retail rates in Dublin set to soar
The Retail Ireland survey has found rates in Dublin could soar by up to 80% next year
Retailers in Dublin could be facing a massive hike in their rates bill, according to IBEC group Retail Ireland. The group has released the results of its recent survey which shows that rates in the capital could jump by between 30% and 80% to fund the upkeep of the premises.
The increases are on foot of the rates revaluation process, which culminated in bills being sent to many retail businesses in recent weeks and months. Rates for retailers are based on a multiple of the total market value of the premises. Some other sectors have their rates calculated on the basis of their turnover. There are fears the increases could force struggling retailers out of business, leaving many people out of a job.
“The news that the cost of commercial rates for many retailers in the city is set to soar is unacceptable,” said Stephen Lynam, director of Retail Ireland. “Retail sales have fallen by 25% in recent years, and tens of thousands of jobs have been lost as a result. Retailers have had to keep prices low to attract price-sensitive customers, despite the fact that rents remain too high and the cost of doing business has increased. These increase are simply not sustainable given the state of the retail market.”
Lynam continued: “This money should be invested in store upgrades and staff numbers, and not in higher local authority charges. We know that Dublin City Council needs funding in order to do the work it does, and we accept that. But retailers should not be forced to bear an unsustainable burden, especially at this very difficult time in the domestic economy.”