Cork City Council increases budget for 2026 to €362.2m
On Wednesday, Cork City councillors voted in favour of an expenditure budget of €362.2m for 2026, a near €36m increase on this year's budget. Stock picture
Cork City councillors have voted in favour of an expenditure budget of €362.2m for 2026, a near €36m increase on this year's budget.
At its annual budget meeting on Wednesday evening, the council also approved a 5% increase in commercial rates, and agreed to reintroduce a rates incentive scheme offering a rebate of up to 4% to qualifying rate payers.
It also agreed not to increase car parking charges for either on-street or the city council-owned car parks.
The main contributors to the €36m increase in expenditure are an extra €14.9m spend on homeless funding, and a €8.7m increase in capital advance leasing facility (CALF) funding/repair and lease-funding support provided by local authorities to approved housing bodies to help fund the construction or purchase of new social housing units.
A further €1.1m will be allocated for Croí Conithe, a fund to support the building of apartments for sale to owner-occupiers.
The council has also allocated a €3.8m increase in payroll to meet national pay agreements, a €1m increase in Local Area Committee funding, a €1m increase in the Disabled Person’s Grant fund, and a €650,000 increase in footpath repairs and tree management.
Cork City Council chief executive Valerie O’Sullivan said the preparation of the 2026 budget was "challenging, with factors like cost-of-living increases, and cost of doing business — which also impact the city council — increased demand for services against a backdrop of payroll increases on foot of national pay agreements, among the significant financial challenges in the year ahead".
She said in order to enhance and maintain existing levels of service in the face of economic uncertainty and increased costs, it is necessary to review all income streams and expenditures on a constant basis.
"However, in order to produce a balanced budget, it will be necessary to have a rate increase."
Ms O'Sullivan said the council recognises the challenges facing commercial rate payers, especially the smaller businesses who have seen the cost of running their business increase in recent years.
She also said that, in recognition of this, the council would be reintroducing a rates incentive scheme which will give a 4% rebate for all rate payers who have an annual rates liability of up to €4,000, and a 2% rebate for those rate accounts from €4,001 to €10,000, meaning that 75% of all ratepayers will benefit from the rate incentive scheme.
These ratepayers will experience an increase of between €8 and €290 on their annual rates bill — the equivalent of an increase of between €0.15 and €5.57 per week, she said, adding that there would be no application process as rate accounts which meet the qualifying criteria will have the grant automatically applied as a credit to their account in 2027.
To qualify for the rebate, ratepayers must have their account settled in full by November 30 of next year and have no outstanding arrears on their account. Ratepayers that pay their account on a payment plan will also qualify for the grant.
“The city council will continue to monitor the collection of rates in 2026," she said.
And following the establishment of the city council’s new city centre directorate earlier this year, Ms O’Sullivan said ratepayers will see "a new level of focussed attention on the presentation and revitalisation of the city they rely on for business to thrive".
Ms O'Sullivan also pointed out that the Government agreed to open an appeals process this year for the Increased Cost of Business (ICOB) grant and Power Up grant schemes after it emerged that many businesses in the hospitality, retail, and beauty sectors misclassified their business sector when applying for the ICOB grants and were subsequently deemed ineligible for the second ICOB payment and the Power Up.
She said Cork businesses in these sectors that misclassified their sector are eligible to appeal and may be eligible for the grants.
Ms O’Sullivan also made reference to the index-linked annual payment Cork City Council has to pay to Cork County Council for at least 10 years under the terms of the 2019 city boundary extension, and which has increased substantially in recent years.
She said that this was "not a sustainable cost for Cork City Council".
"The council is engaging with the department in relation to the additional indexation cost. That cost is not included in the 2026 Budget."
Ms O’Sullivan said the proposed budget provides funding measures aimed at addressing some strategically important areas, providing a reasonable balance across the council’s objectives to develop the social, cultural, economic, environmental and infrastructural needs of the city in a socially inclusive manner.
“As Ireland’s second city and the engine of the southern region, the city welcomes employers, workers, students, shoppers and tourists, all contributing to its thriving social and cultural landscape.
“To keep pace with this exciting and rapid transformation, the city council must proactively invest in infrastructure, housing, and services, supporting a vibrant city centre and a robust economy.”
Lord Mayor of Cork Fergal Dennehy, also welcomed the adoption of the budget.
“From enhancing the city centre, through initiatives like the city centre wardens who started work this week, to parks and infrastructure, like the Marina and the revamped Bishop Lucey Park which opens on Friday, and housing delivery, with around 3,500 social and affordable houses under construction in the city directly by the city council and in collaboration with the Land Development Agency and Approved Housing Bodies, this budget reflects our shared commitment to building a better Cork,” he said.
Mr Dennehy said the increase in commercial rates was "a decision not taken lightly".
“This adjustment is necessary to sustain the level of service our city requires and deserves. However, we are equally committed to ensuring that ratepayers are supported through this transition.
“The rates rebate scheme will help businesses, particularly small and medium enterprises, in managing the impact of the rate increase," he added.
“We will continue to engage with the business community to ensure transparency, fairness, and access to the resources they need to thrive. Together, we can build a city that works for everyone.”
A collection of the latest business articles and business analysis from Cork.
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