Increased borrowing available to Cork City Council
Cork City Council will be able to borrow significantly more from central government to fund its operations, as part of funding announced by Minister for Finance Simon Harris in Budget 2027.
Minister for Finance Simon Harris said that local authorities will be allowed to borrow an additional €200 million euro per annum starting in 2027.
"Local authorities are the key stakeholders in the delivery of social and affordable housing.
"They are also key in delivering on other government priorities such as infrastructure and urban regeneration.
"Citizens often see government in action at a local level, and I want to give more autonomy to local authorities to do what they are mandated to do," he said.
He also said that local authorities which have the means will be able to invest more in capital projects "that are consistent with Government principles".
Derelict properties
Minister Harris also emphasised the role which local authorities play in the tackling of dereliction. The Derelict Property Tax, announced last year, gives more power to Revenue in highlighting and punishing owners of properties which are left derelict long-term.
Minister Harris said that local authorities continue to have a central role with regard to the identification and registration of derelict properties.
"Work will commence on this in January and preliminary registers of dereliction will be published on 1 September 2027. The rate of tax will be 7% and Revenue will use its full range of powers to ensure high rates of compliance," he said.
The Cork Business Association welcomed the move, but said that its implementation will be critical. CBA Board member Dave O'Brien said that difficulties may arise in its first year.
"There will be situations where there are legal reasons why a property cannot be sold, or where the economics simply do not make sense for an owner to renovate it. We will need to see how the legislation works in practice,” he said.
Infrastructure development
Funding was announced by Minister for Public Expenditure Jack Chambers for infrastructure projects across Cork.
BusConnects and the Cork Area Commuter Rail programmes will benefit from the €2 billion being invested in the National Development Plan, as will the M28 Cork to Ringaskiddy project.
Cork Chamber welcomed the funding announcement, but said that further investment was needed for other critical projects.
Cork Chamber CEO Conor Healy said: "Consideration should also be given to the progression of other crucial projects for the region, such as Luas Cork, the Cork Northern Distributor Multi-modal Route, the M20 Cork to Limerick Motorway, and the R624 Great Island Connectivity Scheme.” He also said that broader infrastructural investment is needed. "Investment in the State's critical infrastructure, including energy, water, and wastewater, is crucial to economic resilience and will support housing and economic development. Further measures announced to support the delivery of much-needed housing are welcome, however addition actions are needed to further stimulate the housing market and improve accessibility and affordability, including changes to cost-rental household eligibility thresholds.”
This article was produced with the support of the Local Democracy Reporting Scheme funded by Coimisiún na Meán.