Commercial Rates Increase Highlights Need for Local Government Funding Reform, says Chamber

Cork Chamber, the voice of business in Cork, has raised concerns following the 7.25% increase in commercial rates in Cork County for 2027, highlighting the additional pressure this will place on businesses already facing rising operating costs and, for many, a challenging business environment.

While recognising the significant financial responsibilities facing local authorities and the importance of maintaining and improving local services, these further increases in commercial rates highlight a wider challenge around how local government is funded and resourced.

Commercial rates are a significant operating cost for businesses of all sizes, from those in retail and hospitality to large-scale manufacturing operations and major employers occupying substantial office space. Many are already navigating rising employment, energy and insurance costs. Any further increase must be considered in the context of the cumulative burden on businesses and the potential implications for investment decisions and employment.

CEO of Cork Chamber, Conor Healy, said, “We recognise that local authorities face considerable financial demands and that the services and infrastructure they provide are fundamental to the success of our business communities. However, reliance on commercial rates increases to meet budget shortfalls raises important questions about the sustainability of the current funding model.

“Local authorities need appropriate and predictable funding structures that enable them to plan for the long term, invest in essential services and deliver the infrastructure that growing communities and businesses require. There needs to be a broader conversation about how we adequately fund local government, rather than placing an increasing proportion of that responsibility on the business community."

“We would also emphasise the importance of providing businesses with greater certainty around their costs, and in that regard, it is positive that no further increases are expected from Cork County Council up to 2029. This would be a welcome development, and it is important that businesses can have confidence in that outlook as they plan and invest.

“Businesses understand that delivering quality local services comes at a cost, and they want to see Cork continue to develop and thrive. They are invested in the places in which they operate and recognise the importance of well-maintained public spaces, infrastructure and services.

“However, there is a balance to be struck. Businesses must remain viable if they are to continue employing people, investing locally and contributing to the wider economy. We need to ensure that Cork remains an attractive place to establish and grow a business, and that the cumulative cost of doing business does not undermine that ambition.

“Cork Chamber will continue to engage constructively with the local authority on this issue, advocating for a commitment that goes beyond the 1% minimum of commercial rates revenue currently ring-fenced for economic development activity. Our focus is on ensuring that businesses have a competitive and predictable operating environment, while local government has the funding structures necessary to support Cork's continued economic and social development.”