Cork County Council agrees 7.25% rates rise after tense budget meeting

Cork County Council has passed a record €538m budget for next year, at the second attempt, following a meeting marked by several adjournments and intense negotiations that ultimately resulted in a 7.25% increase in commercial rates.

The council’s executive had sought an 8% increase to cover a €12m gap between income and expenditure.

At its first budget meeting earlier this week, Mayor of County Cork and Fianna Fáil councillor Bernard Moynihan proposed a rates increase of 7.5%, which was voted down.

Fine Gael councillors who voted against the proposal were expected to make a counterproposal at Wednesday’s meeting, but their council leader, Michael Hegarty, declined to do so, saying he would “put the ball back” into the Fianna Fáil court and that of the Independents who had voted for the 7.5% increase.

That caused consternation among councillors and led to the first of three adjournments.

Council chief executive Moira Murrell spent considerable time outlining why the local authority needed the rates increase to help fund its wide range of services, new projects and meet the demands of a growing population.

She said inflation had been “very considerable and impactful” on resources and that she was obliged to protect the council’s financial standing now and into the future.

The council would also have to factor in a significant increase in staff wages, as agreed under public sector pay negotiations.

Ms Murrell outlined the risks to much-needed projects throughout the county if the budget was not passed. Mr Moynihan then proposed a 7.25% rates increase.

Social Democrats councillor Ann Bambury said the increase might be “unpalatable” and asked what a 5% rise would mean for the council’s budget. She was told it would result in a €4m deficit, leading to a significant curtailment of services.

The 7.25% increase was passed by 27 votes to seven, with 20 abstentions, most of them from Fine Gael councillors who opted not to vote.

Supports for small businesses Ms Murrell said the budget package would include generous, scaled waiver supports for small and medium-sized businesses, acknowledging that many were struggling.

She said the supports would be targeted in particular at small pubs, restaurants and coffee shops.

As part of the agreement, central council funds will also provide an additional €200,000 a year to each of the county’s eight cash-strapped municipal districts.

The 7.25% increase will apply only next year and will not carry over into 2028 or 2029, due to a forthcoming Government review of rates valuation.