Small businesses in Sligo are facing “a perfect storm”

INCREASED energy costs of up to €1,000 per week, a shortage of staff and looming income tax bills which were deferred during Covid but must be paid in 2023 have placed small and medium sized businesses in the centre of a looming “perfect storm” the cathaoirleach of Sligo County Council has warned this week.

Cllr Michael Clarke fears businesses will close, and jobs will be lost and he has been vigorously supported in that view by fellow councillors calling on the Government to build special supports into the forthcoming budget for small businesses. Cllr Clarke said “top restaurants in Sligo town” are having to rotate staff and not open on certain days because they can’t get staff. This, he added, was “very unusual”. He said it was worrying that businesses can’t stay open because of a lack of staff, because of increasing costs and also facing major tax payment costs.

“It is a perfect storm on the way,” he said.

Cllr Paul Taylor raised his concerns for middle income earners and small businesses when he tabled a motion at Monday’s meeting of Sligo County Council where he asked the Government to take urgent action to support middle income households and the self-employed.

He said the situation was worrying as the winter months fast approached, rising fuel costs, and weekly shopping bills on the rise.

“The government needs to urgently step in to protect families, by providing supports towards electricity, gas, and oil costs.

“Those working will also need to see an increase in their take home pay to meet the cost of living. “We do not want to see members of our community struggling and having to make decisions on heating their home or putting food on the table,” he said.

Cllr Taylor said that Sligo County Council needs to be “proactive” to support middle income earners and small businesses in the upcoming budget. Cllr Donal Gilroy said a major looming issue for small businesses was that most of them had to “warehouse” their tax liability during Covid. “It didn’t go away, it is all due to be paid and they will have to pay in 2023,” he said.

He said when this happens “businesses will fold, and people will be out of jobs” so it is very important that the government takes this on board.

“I’m not saying give them ‘a free card’, but something has to be done for them,” he added.

Cllr Gerard Mullaney said costs would escalate over the coming months.

“Small businesses are under financial pressure having just come out of Covid and will have to finance wage increases for their staff.

“As Cllr Gilroy points out their income tax will have to be paid next year.

“They are in a dire situation. I was talking to someone who told me they would close their business, a small café from October to May. That means job losses, and this will be repeated all over the place,” he said.

Cllr Thomas Walsh said he gets annoyed every time he hears “certain political representatives” talking about unemployment benefit or job seekers’ benefit, and then on the other hand, we have self-employed people, who are the backbone of the Irish economy in small to medium businesses employing up to 10 people who cannot get staff in retail, hospitality and on the other hand “we have people shouting about increasing unemployment benefit and job seekers’ by €20 per week”.

He said it was “very disingenuous with an unemployment rate in the country of 4.2% that anybody who isn’t working now, unless they have a genuine reason due to illness or they are carers, there isn’t an excuse for people not having a job today.” He said since 2011 ‘middle-income Ireland’ has paid the highest price for bringing our economy back to where it is now with the highest ever exchequer figures, highest ever level of income tax coming into the country and predicted to grow next year and the year after that, so it is about time that ‘middle-income Ireland’ got some sort of a break in the budget, he said.

“They have paid the most since 2011, they have turned our economy around on its heels and I believe they are the people and the small businesses who should be looked after while our economy has a surplus and I am hoping that money that had been ring-fenced to deal with the cost of living crisis will be used to support that middle-income bracket and small to medium sized enterprises,” he said.

Cllr Darragh Mulvey said businesses in Sligo were looking at a very uncertain future with one businessperson telling him he was facing an increase of €1,000 per week in electricity charges. “You can’t turn off everything in terms of using power, so every effort has to be made to support small businesses and people in general in this difficult time,” he said.

Cathaoirleach Cllr Michael Clarke, commenting on what he described as “top restaurants in Sligo town” having to rotate staff and not open on certain days because they can’t get staff was “very unusual”.

He said it was worrying that businesses can’t stay open because of a lack of staff, because of increasing costs and also facing major tax payment costs.

“It is warned

aperfect storm on . the way,” he

Cllr Michael Clarke said is very concerned about potential for closure of businesses and loss of jobs.