Cork's Fine Gael councillors oppose commercial rates hike on city traders
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Fine Gael’s Cork City councillors have united to oppose a commercial rates hike.
Their decision increases the pressure on city officials to find the savings required to plug a €2.5m shortfall before next week's 2025 budget meeting.
The reported in October how a commercial rates hike of up to 3% was being considered as the city tried to plug what was a €3m deficit at that stage.
The deficit has now reduced to about €2.5m, following the consideration of additional income, but a rates hike in the order of 2.5% to 3% is still on the table as negotiations continue.
Des Cahill, leader of the Fine Gael party's group on council, said all five councillors would oppose any rates hike.
“We should be looking for savings in City Hall rather than charging businesses. This is not the time to put an extra strain on those in retail or hospitality,” he said.
"The Government has given a lot of grants to business over the last few years — more than any increase in rates — but we shouldn’t be giving out grants with one hand, and then taking it back with the other hand.
“Our position is clear. We are not in a position to agree to any increase in rates.
“I am confident that the new chief executive, once she conducts a root-and-branch review of the organisation, will find the required savings over the next 12 months, and not affect services.”
Fine Gael councillor Shane O’Callaghan said a rates increase could not come at a worse time for SMEs, many of which are already struggling to survive.
“Businesses are already grappling with increased energy costs, minimum wage increases and a rise in the cost of materials and it is not fair, reasonable or realistic to now also expect them to pay higher commercial rates," he said.
Party colleague Damian Boylan said a commercial rates increase at the moment was nonsensical.
“If we as a local authority start making it even harder for businesses, what message are we sending out? We have to do all we can to support businesses and I think the savings can be found internally,” he said.
Councillors approved a 1.2% rates hike in 2022, and a 3.8% rates hike for 2023 but they did not increase the rates for 2024.
They pointed out last year that the city’s commercial rates have only risen by a total of 1.2% in the 13 years to 2022, and have only been increased by a cumulative 5%, far below the cumulative inflation rate, for that 14-year period.
All 31 councillors are set to discuss and then vote on the 2025 budget next Wednesday.