Cork City Council Approves €362.2m Budget for 2026 with 5% Rates Increase

Cork City Council has approved a €362.2 million expenditure budget for 2026, representing a near €36 million increase on this year, with a 5% rise in commercial rates offset by a rebate scheme to support smaller businesses.

The budget was adopted at the council's annual budget meeting this evening, Wednesday, 12 November, with 23 elected members voting in favour and 8 against.

The largest single contributor to the expenditure increase is a €14.9 million boost to homeless funding, followed by an €8.7 million increase in Capital Advance Leasing Facility (CALF) funding to support social housing construction. Other significant increases include €3.8 million for payroll to meet national pay agreements, €1 million each for Local Area Committee funding and Disabled Person's Grants, and €650,000 for footpath repairs and tree management.

Valerie O'Sullivan, Chief Executive of Cork City Council, acknowledged the financial pressures facing the local authority:

"Since 2009, the city council has increased commercial rates by a cumulative 5% - far below the cumulative inflation rate for that 16-year period. However, in order to produce a balanced budget, it will be necessary to have a rate increase."

To ease the burden on businesses, the council is reintroducing a rates incentive scheme. Ratepayers with annual liabilities up to €4,000 will receive a 4% rebate, while those with liabilities between €4,001 and €10,000 will get a 2% rebate. This means 75% of all ratepayers will benefit, experiencing increases of between €8 and €290 annually, equivalent to €0.15 to €5.57 per week.

The rebate will be automatically applied in 2027 to accounts settled in full by 30 November 2026, with no application process required. Ratepayers on payment plans will also qualify.

Good news for motorists and visitors: the council has not increased car parking charges for either on-street parking or council-owned car parks.

Ms O'Sullivan also highlighted the index-linked annual payment Cork City Council must make to Cork County Council for at least 10 years under the 2019 city boundary extension terms, calling it unsustainable. "The council is engaging with the department in relation to the additional indexation cost. That cost is not included in the 2026 Budget," she said.

Lord Mayor of Cork, Cllr Fergal Dennehy, welcomed the budget adoption:

"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."

Almost 3,500 social and affordable homes are currently under construction across the city, delivered directly by the council or in partnership with the Land Development Agency and approved housing bodies. The council expects to complete 7,000 repair cases next year and return up to 300 vacant properties to use.

The National Transport Authority has allocated €34.5 million for sustainable transport measures, with ongoing work on schemes including Lehenaghmore Road, the Marina Promenade Active Travel Scheme, and the Ballyvolane Strategic Transport Corridor.

Community supports remain a priority, with €2.7 million allocated for events, arts, and sports grants. Local Area Committees will receive €3 million (€600,000 each) for discretionary spending on projects such as estate resurfacing, traffic calming, and footpath repairs.

The new City Centre Development and Operations directorate receives dedicated funding, with €193,500 specifically supporting initiatives under a planned City Centre Strategy. The Economic Development Fund continues with €770,400 allocated, while the Community Climate Action Fund remains at €860,000 with implementation expected through to June 2027.