Rates hike will push struggling Cork traders towards closure, warns business lobby

“While we recognise the challenges the council faces in addressing the projected €3m deficit, raising commercial rates by up to 3% would place an additional burden on already struggling businesses,” a spokesperson said.

“Small businesses are grappling with immense pressures from rising costs, including energy, materials, and wages. A further increase in commercial rates could push more businesses towards closure.” 

The Irish Examiner revealed earlier this week that an increase in commercial rates of up to 3% is being considered against the backdrop of a €3m deficit as talks on the 2025 budget continue ahead of November’s budget meeting.

Fianna Fáil Cllr Sean Martin, chair of the council’s finance committee, said budget talks are ongoing and city officials have been asked to examine an extension of the council’s rates rebate scheme. But Fine Gael Cllr Shane O’Callaghan said more government funding is the only solution.

Former Lord Mayor Mick Finn, an independent candidate in the general election, said a 3% rates increase would "sound the death knell" for small traders.

“Any gaps in the council’s operating budget for 2025 must be funded by central government and not from those businesses trying to keep their heads above water across Cork,” he said.

“Lennox’s — a 73-year-old family business — closed lately citing increased costs of business among the reasons for closure.

“Established businesses like Porter’s, Twilight News and Con Murphy’s on Patrick’s Street, Pigalle on Barrack Street, Nash 19 on Prince’s Street and many others have blamed high rents, soaring energy and operating costs and trading environment changes as reasons for closing their doors.

“Adding a rates hike to the melting pot cannot be the solution at this time.”