Cork businesses face 8% rates hike under council budget

Businesses in Co Cork could face an 8% rise in commercial rates next year if a budget prepared by Cork County Council officials is endorsed on Monday.

Council bosses say they need it to bridge a shortfall of €12m between expenditure and income to avoid reducing services next year.

Some ‘horse-trading’ is ongoing between political parties in County Hall before councillors vote on the matter, with attempts to reduce the rates increase to 6% or 7%.

A pact between Fianna Fáil, the biggest party on the council, and the Independents means they hold the majority vote.

Fianna Fáil council leader Gearoid Murphy said: “This is a particularly important budget, because the rates re-evaluation in 2027 (by the National Valuation Office) means we must consider the next three years in terms of the council's financial position, as we will be unable to change the level of rates during that time.

"Equally, we are acutely aware of the pressures facing businesses and the need to ensure that any budget provides certainty for them over the next three years. Our discussions are ongoing (with council bosses) and will continue between now and Monday,” Mr Murphy said.

Fine Gael, the second biggest party on the council, has already nailed its colours to the mast, saying it will firmly reject the 8% rates increase.

“A lot of smaller businesses in particular are struggling due to increases in the minimum wage and energy costs,” said Fine Gael council leader Michael Hegarty.

Independent Ireland councillors and Labour councillors are also expected to reject the budget as it stands.

The Social Democrats councillors insist the real problems emanate from a lack of proper government funding to local authorities.

“The expectation cannot be that the public will continually be asked to pick up the financial shortfall year after year through increased charges and contributions. Central government must recognise its responsibility to provide adequate funding rather than transferring an ever-increasing burden onto households and businesses,” said Social Democrats councillor Ann Bambury.

It’s expected some councillors will also ask council management to dip into the reserves to ease the ratepayers’ burden. The council didn’t increase rates between 2018 and 2021, or in 2024, and this year.