Cork City Council agrees revenue budget of €325m for 2025

The proposal to increase commercial rates for traders by 2.5% was dismissed at the Cork City Council budget 2025 meeting, which further saw the abolishment of the Rates Incentive Scheme, payable for 2025 in 2026.

The Rates Incentive Scheme saw qualifying ratepayers receive a 3.8% rebate on the first €4,000 of their bill in 2024.

Councillors voted by a majority 23 votes to three, to adopt the budget at the conclusion of the meeting, which was held in council chambers on Wednesday evening at Cork City Hall.

The budget, which was set out by Cork City Council CEO, Valerie O’Sullivan, provides for an investment of €325m in the delivery of services to the city next year, in what is the largest ever budget to be presented to elected members.

The allocated spending for 2025 represents an increase of €32.6m on the budget set out in 2024.

The main contributors to this increase comprise mainly of an increase in the CALF/Repair and Lease Scheme by €9.2m; an increase in funding for Croí Cónaithe by €3.3m; an increase in payroll of €6.4m; an increase in the budget for homelessness services of €6.3m; an increase in Social Inclusion and Community Activation Programme by €600,000; an increase in Disabled Person’s Grants of €1.9m and an increase in inspections of privately rented houses of €1.5m.

In a report shared with council members, Ms O’Sullivan stated that the composition of next year’s budget, similar to last year’s budget, proved to be “very challenging,” in light of factors including the cost of living, cost of doing business, increased demand for services and payroll increases.

The Chief Executive further said that in preparing the draft budget, the views and priorities of the elected members, as expressed in meetings of the Finance and Estimates Committee, and at Corporate Policy Group, were taken into account.

“The approval of this budget is vital for the progression and maintenance of our city,” said Ms O’Sullivan.

“This budget provides scope for further investment in both the day-to-day service delivery for the people of Cork, while providing much needed funding for Housing Revenue and Capital Services.” 

 The Lord Mayor of Cork, councillor Dan Boyle said that this budget enables Cork City Council to maintain “essential services” while advancing its strategic objectives to enhance Cork as a better place to live, work, and invest.

To avoid an increase in rates for traders, Ms O’Sullivan proposed five saving methods which included €560,000 from rent increase, as rental income for additional house purchases; €200,000 from a reduction of rates abatement to 40% (previously 50%); €537,000 from the ending of the Rates Incentive Scheme; €408,000 from delaying recruitment by an additional month; and €795,000 from the reduction in draft budget of non-pay discretionary spend.  

While the amendment was approved as a whole by majority vote, but Green Party councillor Oliver Moran said that the decision to not raise the rates is a “spoof” and “dishonest to businesses.” 

“Instead of increasing rates by 2.5%, the Rates Incentive Scheme that gave small businesses [3.8%] back on their annual bill is being scrapped,” he told The Echo.

“I think that’s unfair to the smallest of businesses.” 

During a meeting held on September 25  2024, Cork City Council voted that the Local Adjustment Factor (LAF) of Local Property Tax (LPT) in Cork City would vary upwards by 12% -  an increase of 3% on the previous year, providing additional funding for footpath repairs, tree pruning and ward funds.

The agreed upon budget further states that there will be no increase to car parking charges seen, due to the loss of 440 parking spaces in the city since 2021, and a reduction in future spending expected due to “further pressure” on parking income with the recently commenced Morrison’s Island Public Realm Improvement and Flood Defence project.

There will however be increased spending allocated next year for improving public lighting following the adoption of the New Public Lighting Framework 2020, and priority given to improving main traffic routes and footpaths, with an increase of €31,000 in relation to ward funds over and above the 2024 budget.

Labour Party councillor, Peter Horgan, who was in favour of the budget, said that it was important to pass the allocated spending as laid out by the Chief Executive given that “we need the city to operate in 2025.” 

"We have a duty as elected members of Cork City Council to ensure that the council continues to operate and to serve the people of Cork, and that's what was done, we passed the budget that will deliver, not everything we want, but gets us on the pathway to achieve what we want in our communities and city,” he said.