BUSINESS leaders have warned that Limerick businesses will go bust if the Council goes ahead with plans to hike commercial rates by six per cent in this Friday’s budget.
Limerick Chamber formally objected to the proposed increase outlined in the Draft Local Authority Budget for 2026.
In a statement, the Chamber said the increase, “which significantly outpaces inflation forecasts, will impose an unsustainable financial burden on the local business community”.
Seán Golden, chief economist and director of policy for Limerick Chamber, said the “increase is simply too significant for our business community to absorb, especially with just weeks to plan”.
“At a time when businesses are already navigating the cumulative pressures of minimum wage increases, mandatory pension contributions, and persistent operational cost inflation, this rate hike represents a substantial new threat.
“When Limerick’s major employers compete on a global stage, we must be careful not to unnecessarily raise the cost of doing business locally. We urge the Council to urgently revisit this figure and move towards a more reasonable compromise.”
The Chamber’s analysis indicates the increase will disproportionately impact key sectors, stating that some anchor retail tenants in the city centre could face bill increases of up to €3,000.
Some SMEs, the Chamber said, may be pushed beyond the €30,000 rateable valuation threshold, losing their eligibility for the SME rebate scheme and facing an effective rates increase of over €3,000. And some of the region’s largest employers could see their rates increase by more than €50,000.
While recognising the Council’s budget pressures, Limerick Chamber is advocating for a focus on organic revenue growth.
“By fostering a more pro-business environment through improved safety, cleanliness, and the public realm, the Council can expand its rateable base naturally. This approach would distribute the financial load more equitably,” the Chamber suggested.
The Chamber is calling upon the elected members and executive of Council to negotiate a more sustainable rates figure for 2026.
The call comes against a background of Mayor John Moran warning that Limerick is heading for an “austerity” budget as the local authority is facing an €8m deficit in the public finances.
He warned that a rise in rates is just one of the tough measures on the table, along with possible cuts to public services to bring the Council’s budget back in line.
“We have an obligation to deliver a balanced budget,” the Mayor said at a recent meeting to discuss the economic proposals.
“This budget is a ticking time-bomb. What I have pointed out is we are facing a very perilous situation in the budget for Limerick,” Mayor Moran told councillors.
“We are into a very difficult, potential austerity type budget here in Limerick in order to get the budget to balance. Unless government provide us with more money or we find another source of funding.”
The Council’s budget will be finalised at a meeting this Friday.