Cork Chamber CEO says rates increase adds to pressure on businesses

New commercial rates agreed by Cork County Council will place additional pressure on businesses already facing rising operating costs, Cork Chamber has warned.

On Wednesday, Cork County Council agreed a €538m Budget for 2027, which will include a 7.25% increase in commercial rates for 2027.

While welcoming the fact that further increases are not expected up to 2029, Cork Chamber CEO Conor Healy said businesses are already navigating rising employment, energy, and insurance costs.

“We recognise that local authorities face considerable financial demands and that the services and infrastructure they provide are fundamental to the success of our business communities,” said Mr Healy.

“However, reliance on commercial rates increases to meet budget shortfalls raises important questions about the sustainability of the current funding model.

“Local authorities need appropriate and predictable funding structures that enable them to plan for the long term, invest in essential services and deliver the infrastructure that growing communities and businesses require.

“There needs to be a broader conversation about how we adequately fund local government, rather than placing an increasing proportion of that responsibility on the business community,” he added.

“Cork Chamber will continue to engage constructively with the local authority on this issue, advocating for a commitment that goes beyond the 1% minimum of commercial rates revenue currently ringfenced for economic development activity,” said Mr Healy

“Our focus is on ensuring that businesses have a competitive and predictable operating environment, while local government has the funding structures necessary to support Cork’s continued economic and social development.”