Business group urges Council not to increase city rates

The Cork Business Association has urged Cork City Council not to increase commercial rates, saying it could mean thousands off the bottom line of local businesses.

Last week The Echo reported that councillors were considering a 7% increase in the annual rates paid by city centre businesses as part of the 2027 budget, which is set to be finalised next month.

Commercial rates rose 5% last year, though a proposed 2.5% increase in the previous budget was shot down by councillors.

A spokesperson for the Cork Business Association (CBA) said it was aware that a second commercial rates increase this year is being considered by Cork City Council. “From pension auto-enrolment and the rise in the minimum wage to soaring costs from suppliers, businesses are already struggling to stay viable,” said the spokesperson.

The spokesperson said that these mounting costs “risk undermining the very foundation of our city’s economic resilience.

“We fully recognise the need for Cork City Council to invest in the city’s future, so we call on central government to support this. We need to support business sustainability and protect local jobs. A rates increase now sends the wrong message to those who continue to invest in and champion our city despite increasingly difficult trading conditions.”

The proposed 7% increase reported would equate to approximately €4,000 off the bottom line for a business operating two medium sized bars or restaurants in the city, and €11,000-12,000 for a hotel.

The CBA urged the council to defer any increase until inflationary pressures ease and to work collaboratively with the CBA and business community.

In the 2026 budget approved last year, the council reintroduced a rates incentive scheme to protect smaller businesses, and this year councillors are considering increase and looking for some of the income from a rates hike be set aside to host Fleadh Cheoil na hÉireann.