Cork’s county councillors reject proposed rise in commercial rates for 2026

By Peter McCarthy, Corkman

The elected members of Cork County Council have voted to approve an increased budget for the local authority in 2026 but rejected a proposal from the executive that commercial rates be increased next year.

The executive had sought a 3pc increase in the Annual Rate on Valuation (ARV), the multiplier a local authority uses to calculate its commercial rates each year, which it said would generate an additional €4.2m in income for the council next year. The council’s Director of Finance Loraine Lynch argued that inflation meant that an extra €8.9m would be required just to maintain current service levels.

The council’s draft budget for 2026 proposed total expenditure of €530m, almost €14m more than this year’s budget. The increase was to be partially met by raising commercial rates on the county’s businesses.

However, councillors voted instead to accept a Fianna Fáil amendment to keep rates at their current level. The proposal put forward by the Fianna Fáil leader in the council, Cllr Gearoid Murphy, and seconded by Cllr Deirdre Kelly, was supported by 34 of the elected members and opposed by 17.

While acknowledging the challenges faced by the council, Cllr Murphy said that “as councillors, we are generally reluctant to increase the ARV unless necessary. We recognise the important contribution to the county which is made by businesses. These amendments allow us to achieve a balanced budget while keeping the rates at the same levels as this year.”

Councillors from all of the political parties as well as independents spoke out against raising commercial rates, which they said would put further pressure on businesses already facing many challenges, including auto-enrolment for pensions and increases in the minimum wage.

The budget approved by the councillors amounts to €526m, an increase of €10m on the 2025 budget, and includes increased investment in frontline services such as roads maintenance, housing maintenance, library operations, public conveniences and estates taken in charge.

A total of €2.9 million will be spent on housing day-to-day repairs, energy efficiencies, and bringing housing stock back into use while €678,000 has been allocated for burial grounds expansions as well as funding for piers, harbours, and climate action.

“This budget continues to have a strong emphasis on our communities and supporting the towns and villages across the county of Cork. It strikes a careful balance between growth and protecting our frontline public services. I particularly welcome the expansion of community wardens, the increased investment in housing and the efforts to encourage the use of vacant commercial properties,” the Mayor of the County of Cork, Cllr Mary Linehan Foley, said.

The Chief Executive of Cork County Council, Moira Murrell, said the budget “reflects Cork County Council's commitment to the sustainable development and enhancement of the county. It provides for the continued delivery of high-quality public services, while strategically investing in the infrastructure and initiatives that underpin economic growth and community wellbeing.”