Limerick City Council has this week become the first local authority in at least 10 years to lower its commercial rates.

The council, which has consistently had one of the highest commercial rates - this year at €22,972 per 200sq m development - has reduced its levy on businesses for next year by 0.5 per cent. The Chambers of Commerce of Ireland (CCI), which monitors the commercial rates charged by the 34 local authorities in the Republic, says that it believes this is the first time a council has cut its rates, though it only has figures dating back to 1994 to confirm this fact. A spokesman for the Valuations Office said that he couldn't recall another local authority that had ever lowered its levy.

The CCI has long campaigned for a reduction in commercial rates, which it believes put an unfair burden on businesses and is damaging competitiveness. Seán Murphy, CCI head of research, welcomed the Limerick move and called on other local authorities to follow suit.

"Historically, inadequate Exchequer funding has left local authorities to source necessary funds from the business community through commercial rates, water charges, development levies and other taxes," he said. No one at Limerick City Council could be reached to explain the decrease in charges.