CBA: Rates hike would be a financial strain

A business group on Leeside this week urged Cork City Council to postpone increasing its commercial rates.

Rumours of the proposed increase have been circulating in Cork city with Cork Business Association (CBA) now calling for it to be postponed in light of the escalating costs currently facing businesses.

From pension auto-enrolment and the rise in the minimum wage to soaring costs from suppliers, the CBA said businesses are already struggling to stay viable.

Dave O’Brien, President, Cork Business Association, explained: “Introducing a rates hike at this juncture would add yet another layer of financial strain. It’s one many simply cannot absorb. These mounting costs risk undermining the very foundation of Cork city’s economic resilience. We fully recognise the need for Cork City Council to fund essential services and invest in the city’s future, so we call on central government to support this. We need to support business sustainability and protect local jobs. A rates increase now sends the wrong message to those who continue to invest in and champion our city despite increasingly difficult trading conditions.”

Mr O’Brien added: “It has been rumoured that there will be a 5% increase. For a business operating two medium sized bars/restaurants in the city, this would equate to a €4,500 hit off their bottom line, or €11,000-12,000 for a hotel, representing a significant additional annual cost at a time when every euro counts.”

The CBA is urging council to defer any increase until inflationary pressures ease and to work collaboratively with the business community on more sustainable, growth-focused solutions.

Sean McCarthy, owner of Paddy the Farmers and Tequilla Jacks said: “We are facing continuous cost increases and it’s making business unsustainable. While national policies are often out of our control, we the business community in Cork City are pleading with local councillors not to increase rates at this critical time or we will face more closures.”