Thursday, August 22 14:14:02
A survey of key Dublin retailers has found that many are facing an increase in their annual rates bill next year of between 30 and 80 per cent, according to Retail Ireland.
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 (see below for more details).
"The news that the cost of commercial rates for many retailers in the city is set to soar is unacceptable. Retail sales have fallen by 25pc 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," said Stephen Lynam, Director of Retail Ireland.
"According to a Retail Ireland survey of eight leading city centre retailers, increases of between 30 and 80 per cent are being proposed. Such increases are not sustainable, given the state of the retail market, and will costs jobs. This money should be invested in store upgrades and staff numbers, not in higher local authority charges."
"If Dublin city centre is to have a thriving retail sector, it must be conscious of the need to keep costs down for retailers, large and small. Retail Ireland will this week be contacting the Dublin City Manager and the Lord Mayor to raise the serious concerns of the city's retailers on the issue," Mr Lynam added.