More support for small firms

Concerns have been raised over the lengths to which small business supports outlined in the last Budget will help, given many local shop owners continue to grapple with massive trading bills, crippling energy costs, and hedging Revenue debt post-pandemic.

“We are all very aware of the rising costs that are strangling our smaller businesses in retail and hospitality. We are very fortunate that we have a great network of supermarkets, food stores, retail outlets, services and hospitality services of varying sizes in our towns and villages. Our local businesses are predominately very modern with high standards of good service for customers. I have to say that those retailers are very concerned about the Small Business Support Scheme,” said Fianna Fáil's Áine Smith.

Speaking at the December monthly meeting of Cavan County Council, Cllr Smith claimed that some business owners have stated “very clearly” that the measures proposed in the budget will “not be of enough assistance” to meet rising costs.

Budget 2024 saw €250m set aside to help small businesses cope with rising costs. The Increased Cost of Business Scheme will offer one-off grants to up to 130,000 small and medium-sized businesses. The payments will come in the form of tiered grants, equivalent to up to 50% of the commercial rates paid by companies this year.

But Cllr Smith said the businesses that stand to benefit are “labour-intensive” and that energy is a “substantial percentage” of their overall trading loss.

“They need to obtain additional Government support to trade profitably and retain existing staffing. I have spoken with many local business owners in my area who are doing their best to provide an excellent service that provide great employment to our area. They have said they will not be in a position to trade profitably enough to retain present staffing levels or indeed to recruit additional staff as they had hoped to do,” she outlined.

Whilst acknowledging the government assistance, it's Cllr Smith's firm belief that more can be done. “We know that smaller businesses in retail and hospitality have crippling energy costs. Unfortunately business closures are becoming a reality and we need to call on the Government to help. The businesses in our local towns and villages are the heartbeat in our areas. They breathe life into our areas and, if we don’t get help for them, our local towns and villages will die. We must assist those who work so hard to keep their businesses going against all the rising costs.”

Her motion was supported throughout the chamber.

Independent Brendan Fay, a publican in Belturbet, revealed that his energy bills are 50 per cent more than they were five years ago.

His last ESB bill was “quadruple” what he had previously paid, and he noted that 2024 brings with it more worries, like the 0.1% increase in PRSI from next October, and the rise in the minimum wage to €12.70. While good for employees, he said these were all factors that business owners need to factor in.

“So many businesses will not be fit to stay open,” he said, calling for a reduction in cost per unit.

There was support for the motion also from Cllrs John Paul Feeley (FF) and Fine Gael's Peter McVitty who hit out at the planned rise in road tolls. “It hits everybody.”

Cllr Patricia Walsh (FF) said that the general public are often unaware of the external pressures businesses are enduring when paying for goods and services.

Cllr Shane P. O'Reilly (Ind) said that, during Covid, the schemes introduced “did help”.

As a local authority he also felt that Cavan County Council had been of great assistance in supporting small to medium businesses having acted with “foresight” and often without due credit in return.

He said of the government scheme that many businesses were unable to benefit because of an inability to obtain a tax clearance certificate after “housing their tax liabilities” between 2020 and 2022.

The requirement to produce a tax cert was therefore an “impossible burden” for many business owners.

“Employers are going to find themselves with some serious costs at the end of January,” he said.

“As a country we should always be looking at ways and means of helping small business.”

The discussion continued with contributions from Aontú's Sarah O'Reilly and TP O'Reilly (FG) and Patricia Walsh (FF).

Cllr Carmel Brady (FG) hinted at some new reliefs being introduced in the first quarter 2024, while her party colleague Trevor Smith lamented how children today are often unwilling to take on a family business having seen the hardships experienced by their parents.

Cllr Clifford Kelly (FF) remarked that many businesses had not yet full recovered from rolling closures during the pandemic; while Cllr Aiden Fitzpatrick (FF) commented that “as a business owner things are getting busier and busier but you can't shake the feeling that you're still standing still”.

He welcomed the benefits for employees contained in Budget 2024, who asked ultimately: “Who pays? The employer pays, that's who.”

Cathaoirleach Philip Brady gave his weight also to the motion, admitting that businesses do “need a lot of help” in the present climate.

He said online shopping is a short sighted solution and it is family-run businesses that are committed to their communities that “if not supported won't be there in the future”.