LONG READ: Tipperary councillors approve 2026 Budget with 5% commercial rates hike

After a turbulent session, Tipperary councillors approved the county’s 2026 Budget on December 5, agreeing to raise commercial rates for local businesses by 5%.

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The meeting followed an earlier adjournment, when councillors were unable to reach agreement on the proposed hike during the November 25 session. 

Fianna Fáil councillor Michael Smith tabled a series of amendments, including increasing the early-payment incentive from 6% to 7%, introducing a €100,000 community lighting pilot, and establishing a working group to examine vacant properties, alongside engaging actively with the Chamber of Commerce and national representatives on roads funding.

The changes to the Rates Payment Incentive Scheme (RPIS) will cost the council €250,000, funded by adjustments elsewhere in the budget. 

The threshold for qualifying businesses will also be raised, ensuring that those eligible this year remain so in 2026. Ratepayers who settle their bills in full by July 31 will now receive a 7%  discount. Councillors and council officials stressed that the amendments were intended to balance the need for revenue with support for local businesses and communities.

Addressing the chamber, Cllr Smith said the adjournment from the previous week had given councillors time to consult with businesses in their areas.

“It allowed us to explain the proposals clearly and show how we are seeking to mitigate the impact while supporting local services,” he said. He recalled a business owner urging councillors not to reduce essential services, highlighting the tension between raising revenue and maintaining vital community support.

Despite the amendments, some councillors remained critical. Independent Cllr Niall Dennehy described the previous meeting as chaotic and unprecedented in his 31 years on the council.

He also expressed frustration over what he described as repeated inequities in local funding, citing limited discretionary allocations in Clonmel despite significant losses in revenue and assets over successive budgets.

Fine Gael’s Cllr John Crosse defended the budget, arguing that the amendments represented ambition and investment for the county. “We want to ensure Tipperary can develop, maintain services, and compete with other counties. Those voting against these proposals are showing a lack of ambition for the county,” he said.

Independent councillor Seámie Morris, reflecting on his long experience in local politics, said he had never seen anything like the budget meeting. He described the proposals as “rammed through” and “an affront to democracy,” arguing that councillors were being asked to approve measures without any meaningful alternatives. 

“This is an absolute disgrace what’s going on,” he said, highlighting the pressures facing local businesses. He cited the closure of his brother’s The Hibernian Inn in Nenagh, which employed 25 people, as a stark example of the challenges facing enterprises across the county. 

“This is a particularly sour week for me,” Cllr Morris said. “My brother, 70-years-old and living with Parkinson’s, had to close his business. Twenty-five people are now on the dole, and unfortunately he won’t be the last pub in Nenagh to close if these pressures continue.” He added that councillors had little choice but to pass the budget but warned that “forcing businesses to shoulder rising costs without national support is unsustainable.”

Calling for a broader conversation on local government funding, Cllr Morris urged that a debate take place early next year. “We need to have a proper discussion about the future of funding for councils,” he said. 

“This is not just a Tipperary issue. Fianna Fáil and Fine Gael should hang their heads in shame at the lack of support coming to councils nationwide.” He also warned that repeating this approach in future budgets could continue to strain small businesses and local communities.

Chief executive Sinéad Carr intervened to remind councillors of their legal obligations, stressing that a budget must be adopted to allow the council to continue operating.  “You have to adopt a budget, whatever that budget looks like,” she said. “If you are not happy with the proposal and reject it, another amendment must be proposed. Without a budget, the council cannot function and there is no leeway.” 

Her comments came amid frustration over the conduct of some councillors in the chamber and online, highlighting the importance of maintaining service delivery across housing, roads, and community facilities.

After further debate, councillors voted 24 in favour of the amended budget and 14 against, with Fine Gael councillors Mary Hanna Hourigan and Marie Murphy absent from the vote. 

The approval confirmed the 5% increase in commercial rates and ensured the implementation of the 7% early-payment incentive, the €100,000 community lighting pilot, and the working group on vacant properties. 

Council management said the budget provides the resources required to maintain essential services, invest in infrastructure, and support local businesses during a period of rising costs.  Tipperary’s commercial rates remain among the lowest in the country, ranking fourth nationally. 

At the November 25 budget meeting, Head of Finance Mark Connolly said: “We’re trying to play catch-up,” citing inflation and the need for the 5% increase. Councillors in favour of the budget said the 7% early-payment incentive will ease the impact on SMEs whilst simultaneously safeguarding services and supporting growth in 2026.

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