Business rates to potentially increase by 10% in Tipperary in 2027

Tipperary County Council has not been able to confirm whether or not business rates in the county are due to increase by roughly 10% in the coming year, however a spokesperson for the council has stated that putting together the budget for 2027 is proving challenging.

Deputy Alan Kelly meanwhile has stated that a crisis meeting between him and some of his fellow Labour party members has taken place in recent days regarding budget concerns for the Premier County.

Concerns regarding the budget for the upcoming year were raised during a recent sitting of the Seanad, with Senator Garret Ahearn mentioning the knock-on effects these concerns could have on businesses in Tipperary.

Speaking in the Seanad on November 3, Senator Garret Ahearn stated that he had been contacted by the council recently, where they outlined their lack of funding, stating that this could potentially lead to a major increase to business rates in the county.

He said: “I got a letter yesterday from Tipperary County Council about the struggle it is going to have in its forthcoming budget in terms of the lack of funding. Local authorities, even Tipperary itself, are proposing an increase of over 10% on rates, which is not the way to do it. It is putting huge pressure on councillors - I am sure Sligo is the same - to make tough decisions on where that funding can be got.

“There are supports there from the Department of housing and local government. I will speak to the responsible Minister of State, Deputy Cummins, and see if he can come in on this. However, there are huge challenges. It all comes back to roads and the increase in costs in road maintenance. As the Senator knows as a former councillor and most of us in this building know, particularly in rural constituencies, road maintenance is one of the biggest requests from constituents regarding improved road conditions.”

When asked about the potential increases to business rates as a result of these supposedly tight budget constraints, a representative from the Tipperary County Council said: “As Tipperary County Council's Budget 2027 process is ongoing it would not be appropriate for me to comment at this stage. I will however say that collating Tipperary County Council's 2027 Budget is proving very challenging.”

Deputy Alan Kelly meanwhile outlined the major budget concerns the council is facing, describing the council’s position as “its worst budgetary situation.”

He said: “I take this opportunity to raise an issue with the Ministers related to local authorities in rural areas. This Friday, I will meet the chairperson of Tipperary County Council, my colleague Councillor Fiona Bonfield, whom the Ministers have met previously, with Councillors Louise Morgan Walsh and Michael Chicken Brennan. We had to have a crisis meeting in the past couple of days on where the council is going from a budgetary point of view. Tipperary County Council, one of the largest councils in Ireland, is heading into its worst ever budgetary situation. It needs intervention from the Government.

“The cost of inflation for the roads budget in Tipperary this year is €3.8 million. The cost of doing business is €750,000 extra. The Uisce Éireann transition cost is €900,000, and the 40% cut in centralised management charges for water services is costing €675,000 because it runs out this year. That is deeply unfair. The costs related to concentric cabling are increasing every year. Over a number of years, it will cost the council up to €15 million.

“This is a local authority that is maxed out on the LPT, at 15%. It is increasing rents and rates and may have to cut services. This is not sustainable. Tipperary is a massive county. There is going to have to be some form of intervention. I have never seen a local authority management team come to me in the manner in which it has on this. Our meeting has been pulled forward to allow me and others to raise this issue with the Ministers. Intervention is needed because without it, the situation will be stark for all Tipperary County Council members and its executive over the coming year.