Circular Fin 06/2020
To: Local Authority Chief Executives
cc. Heads of Finance
02 May 2020

Commercial rates alleviation measures relating to COVID-19 restrictions

A chara,
I am directed by the Minister for Housing, Planning and Local Government to refer to circular Fin
04/2020 concerning commercial rates.

3 month waiver of rates for certain businesses
In light of developments since that circular issued, Government has decided that commercial rates,
for a 3 month period beginning on 27 March 2020, for all businesses that have been forced to close
due to public health requirements, will be waived. The Exchequer will provide €260m to fully fund
the cost of this initiative, based on analysis completed by the CCMA.
The position post-27 June 2020 will be considered as part of a wider review of options to support
enterprises and employment, and associated local authority funding implications, once the unwinding
of public health restrictions has advanced.

Restart Fund
Government has also decided to provide €250m for the establishment of a Restart Fund targeting
micro and small businesses that have suffered a dramatic loss of turnover due to the COVID-19
restrictions and which require assistance in reconnecting with the marketplace. It is intended that this
funding would be a recognition for those businesses who have maintained engagement with their
staff and would be linked to ongoing employment of those staff. In view of the role that commercial
rates can play in post-COVID economic recovery and the impact on local authority revenues, it was
agreed that this measure should be implemented via a system of Commercial Rates rebates/waivers.
Businesses will receive no more than the equivalent of their 2019 Rates bill, capped at €10,000 per
business. The technical details of the scheme, and how the Fund will be administered, will be
developed in the coming weeks by the Department of Housing, Planning and Local Government, the
Department of Business, Enterprise and Innovation and the Department of Public Expenditure and
Reform, in consultation with the CCMA.

 Next steps
The Department is currently considering the implementation arrangements in relation to the above
initiatives and will be in further contact with local authorities in this regard shortly.

Is mise, le meas,

__________________
Lorraine O’Donoghue
Principal
Local Government Finance