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Cabinet will consider approving a new enterprise support package tomorrow to assist retail and hospitality businesses hit hard by higher costs.

Enterprise Minister Peter Burke will fund the plan by tapping unused funds from a €257 million business support scheme.

It allowed businesses to claim 50% of last year's rates bill up to €10,000, giving business owners a maximum grant of €5,000.

Minister Burke will suggest another round of grants for eligible businesses in the retail and hospitality sector.