 has expressed grave concern over delays in the distribution of the Increased Cost of Business (ICOB) grant, with many businesses still waiting for their payments.){kind=link}
The Restaurants Association of Ireland (RAI) has expressed grave concern over delays in the distribution of the Increased Cost of Business (ICOB) grant, with many businesses still waiting for their payments.
The Department of Enterprise, Trade and Employment confirmed to RTÉ News that out of 72,314 firms approved for the ICOB scheme, 71,858 have received their first payment. However, of the 43,825 businesses registered for a second payment, only 26,729 have received it so far.
Introduced in last October’s budget, the ICOB scheme was designed to assist businesses grappling with rising costs. With a total allocation of €257 million, the scheme has disbursed €209 million to date. A total of 120,531 businesses have been deemed eligible to apply.
The second payment, which was announced in May, is part of a broader set of measures aimed at supporting SMEs in the retail and hospitality sectors. The delay in processing this payment has led to significant frustration among businesses.
A spokesperson for the department attributed the delays to the need for further verification to ensure that businesses are operating in the relevant sectors. However, Adrian Cummins, CEO of the RAI, has criticized the pace of payments.
“It is deeply concerning that many businesses in specific local authority areas are still waiting for their ICOB funds,” Cummins said. “This scheme was announced last October, and payments were expected to be completed by the first quarter of this year.”
Cummins added that the RAI is inundated with distressing reports from business owners who are anxiously checking their bank accounts for the much-needed funds. The delay comes at a particularly challenging time for the hospitality sector, which has been struggling with rising costs since the end of the reduced 9% VAT rate last year.
The RAI also highlighted a troubling trend of closures within the sector, with 577 restaurants, cafés, and other food-led businesses shutting down since September of the previous year. The association emphasizes that timely ICOB payments are crucial for those businesses still operating.
“Some businesses have been informed by their local councils that payments could be delayed by another six to eight weeks,” Cummins said. “It is essential that the Minister takes immediate action to address these delays and ensures that payments are made without further postponement.”
The RAI’s call for swift action underscores the critical need for support as the sector continues to navigate financial pressures.