Cork Business Association (CBA) is aware that a commercial rates increase is being proposed by Cork City Council and is 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, businesses are already struggling to stay viable. Introducing a rates hike at this juncture would add yet another layer of financial strain—one that many simply cannot absorb. These mounting costs risk undermining the very foundation of our 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.
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.
Sean McCarthy, owner of Paddy the Farmers and Tequila 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.”
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.
Dave O’Brien, President, Cork Business Association