Cork Business Association (CBA) is aware that a second commercial rates increase this year is being considered by Cork City Council and is calling for it to be aborted considering 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 another 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 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 reported that there will be a 7% increase proposed. For a business operating two medium sized bars/ restaurants in the city, this would equate to approximately €4,000 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 CBA and business community on more sustainable, growth-focused solutions.