CBA slams proposed city rate increases

Cork Business Association (CBA) has said that a proposed increase to commercial rates will be further strain on businesses "struggling to stay viable".

Last week it was reported that a 7% increase to commercial rates is to be proposed as part of Cork City Council's annual budget at a special meeting next month.

The CBA said that for a business operating two medium size bars or restaurants in the city, the increase would equate to approximately €4,000 off their bottom line. For a hotel this would equate to €11,0000 to €12,000.

"From pension auto-enrolment and the rise in the minimum wage to soaring costs from suppliers, businesses are already struggling to stay viable. Introducing another rates hike at this juncture would add yet another layer of financial strain that many simply cannot absorb.

"This represents a significant additional annual cost at a time when every euro counts. These mounting costs risk undermining the very foundation of our city's economic resilience," they said yesterday.

The CBA has said that it is urging the city council to defer any increase in rates until inflationary pressures ease.

It asked the council to "work collaboratively" with the CBA and business community on more sustainable, growth-focused solutions.

Cllr Oliver Moran (Green Party), who sits on the Finance Committee, said that discussions are still ongoing and nothing has been agreed as of yet, but said proposals for rate increases need to be seen in a broader context.

"The Chief Executive is emphasising the need to close the deficit in the city's budget and to replenish the city's cash reserves, which are empty. The cash reserves are needed to access grants from central government, which require local authorities to part-finance some investments in the city.

"The initial budget presented by the Chief Executive assumed an increase of 8% for Local Property Tax (LPT),” he said.

"In the end, councillors increased that by only 3%, which means people are looking now to other places, including rates, to fill more of the gap.

"At the same time as the vote on LPT, councillors voted to lock that in until 2029. I didn't support that because I thought it tied our hands. There is also a national re-evaluation of commercial rates in Cork happening next year.

"That means we won't be allowed to change commercial rates again until 2028, which forces us to make a decision this year."

Cllr Kieran McCarthy (Independent) said that this was one of the most difficult budgets that he has seen as a councillor, and that the council is struggling to get value for money on things like road resurfacing and pavement repair.

"Costs have gone up across the council. It used to be the case that you could get five or six housing estates maintained for €300,000-€400,000, but now that's gone up to over €500,000."

However, he said that no proposal is set in stone. The Finance Committee will be meeting next Monday for further discussion before the special meeting in November.

This article was produced with the support of the Local Democracy Reporting Scheme funded by Coimisiún na Meán.