Councils must find cash for pay hikes

Cash-strapped local authorities have to find millions of euro from their own resources to restore public servants’ pay.

It follows confirmation that the Government is not reimbursing local authorities for additional payroll costs they face after the pay restoration timeline was brought forward by five months.

Cork City Council, which hiked business rates last December as part of a package of measures to balance its books, is now facing an additional payroll bill of €575,000.