Cork City Council to Invest €362.2m in Service Delivery Next Year as 2026 Budget Approved
13/11/2025
Cork City Council has agreed an expenditure budget of €362.2m for 2026 at its annual budget meeting this evening, Wednesday, November 12 - a near €36m increase on this year.
The main contributors to the increase in expenditure are:
- a €14.9m increase in homeless funding;
- a €8.7m increase in Capital Advance Leasing Facility (CALF) funding/repair and lease – funding support provided by local authorities to approved housing bodies to help fund the construction or purchase of new social housing units;
- a €1.1m increase in funding for Croi Conithe;
- a €3.8m increase in payroll to meet national pay agreements;
- a €1m increase in Local Area Committee funding;
- a €1m increase in the Disabled Person’s Grant fund;
- a €650,000 increase in footpath repairs and tree management.
The city council also approved a 5% increase in commercial rates, it is reintroducing a rates incentive scheme to offer a rebate of up to 4% to qualifying rate payers, and it has not increased car parking charges for either on-street or the city council-owned car parks.
The chief executive of Cork City Council, Valerie O’Sullivan, said the preparation of the 2026 budget was challenging, with factors like cost-of-living increases, and cost of doing business - which also impact the city council - increased demand for services against a backdrop of payroll increases on foot of national pay agreements, among the significant financial challenges in the year ahead.
To enhance and maintain the existing levels of service provided by the city council in the face of economic uncertainty and increased costs, it was necessary to review all income streams and expenditures on a constant basis, she said.
“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,” she said.
She said the city council recognises the challenges facing commercial rate payers, especially the smaller businesses who have seen cost of running their business increase in recent years.
In recognition of those, she said the council is reintroducing a rates incentive scheme which will give a 4% rebate for all rate payers who have an annual rates liability of up to €4,000, and a 2% rebate for those rate accounts from €4,001 to €10,000.
This means that 75% of all ratepayers will benefit from the rate incentive scheme.
These ratepayers will experience an increase of between €8 and €290 on their annual rates bill – the equivalent of an increase of between €0.15 and €5.57 per week.
There will be no application process - rate accounts which meet the qualifying criteria will have the grant automatically applied as a credit to their account in 2027.
To qualify for the rebate, ratepayers must have their account settled in full by November 30, 2026 and have no outstanding arrears on their account. Ratepayers that pay their account on a payment plan will also qualify for the grant.
“The city council will continue to monitor the collection of rates in 2026. We intend to give every assistance to rate payers so that they can settle their liabilities promptly,” she said.
And following the establishment of the city council’s new city centre directorate earlier this year, Ms O’Sullivan said ratepayers will see a new level of focussed attention on the presentation and revitalisation of the city they rely on for business to thrive, she added.
She pointed out that the government agreed to open an appeals process this year for the Increased Cost of Business (ICOB) grant and Power Up grant schemes after it emerged that many businesses in the hospitality, retail and beauty sectors misclassified their business sector when applying for the ICOB grants and were subsequently ineligible for the second ICOB payment and the Power Up.
Businesses in these sectors that misclassified their sector are eligible to appeal and may be eligible for the grants.
Ms O’Sullivan also made reference to the index-linked annual payment Cork City Council has to pay to Cork County Council for at least 10-years under the terms of the 2019 city boundary extension, and which has increased substantially in recent years.
“This is not a sustainable cost for Cork City Council. 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.
Ms O’Sullivan said the proposed budget provides funding measures aimed at addressing some strategically important areas, providing a reasonable balance across the council’s objectives to develop the social, cultural, economic, environmental and infrastructural needs of the city in a socially inclusive manner.
“Cork City is a dynamic centre of enterprise, innovation, and youthful energy, attracting a growing population of students and professionals drawn to its leading educational institutions and high-tech industries,” she said.
“As Ireland’s second city and the engine of the southern region, the city welcomes employers, workers, students, shoppers and tourists, all contributing to its thriving social and cultural landscape.
“To keep pace with this exciting and rapid transformation, the city council must proactively invest in infrastructure, housing, and services, supporting a vibrant city centre and a robust economy.”
Lord Mayor of Cork, Cllr Fergal Dennehy, welcomed the adoption of the budget.
“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,” he said.
“It prioritises investment in essential services that matter most to people’s daily lives and will enable us to maintain and improve the standards of service delivery, while also responding to emerging needs.
“We acknowledge that it includes an increase in commercial rates, a decision not taken lightly.
“This adjustment is necessary to sustain the level of service our city requires and deserves. However, we are equally committed to ensuring that ratepayers are supported through this transition.
“The rates rebate scheme will help businesses, particularly small and medium enterprises, in managing the impact of the rate increase.
“We will continue to engage with the business community to ensure transparency, fairness, and access to the resources they need to thrive. Together, we can build a city that works for everyone.”
The Elected Members voted 23 in favour of adopting the budget and 8 against.
Key points:
Local Authority Housing
Almost 3,500 social and affordable homes are under construction in the city, either directly by the city council and in collaboration with the Land Development Agency and approved housing bodies, with a strong delivery pipeline.
Affordable Housing
A total of 452 new homes are programmed for delivery up to 2026, with construction of 290 complete, sales closed on 280 homes, and the balance of 162 under construction across five schemes.
Housing Maintenance
It is projected that 11,000 repair requests will be received for action by direct labour next year, with 7,000 repair cases to be actioned, and 300 properties to benefit under an energy efficiency retrofitting programme. The council expects to return up to 300 vacant properties from repair, to carry out 10,000 inspections of private rental properties, and has set aside €4.1m for disabled person grants - €1m more than this year’s budget.
Roads and Transportation
The council was allocated €34.5m NTA funding for sustainable transport measures, with work ongoing to advance schemes including the Lehenaghmore Road, the Marina Promenade Active Travel Scheme, the Ballyvolane Strategic Transport Corridor - North Ring Road to Mervue, the Blarney Business Park Linkage scheme, and tThe Glanmire to Dunkettle Scheme.
The footpath repair budget has been increased by a further €650,000 in 2026, with an increase of €15,500 in relation to ward funds over and above 2025 budget.
Support to Events, Community, Arts and Sports Grants
Overall, the combined funds for these areas amount to €2.7m. A contribution of €981,800 has been provided for arts bodies, including a contribution made to Cork Opera House.
As well as this, a provision of €324,800 has been included for grants made by the council's Arts Committee, with €260,000 set aside for community grants. The budget also provides for €650,000 in sports grants, €238,100 for the provision of playgrounds, and €100,100 for Tidy District Grants. A sum of €188,100 has been provided under the Creative Ireland Fund, and €1.98m has been provided for social inclusion and community activation programmes. The Schools Meals Scheme budget has been maintained.
Local Area Committees
Some €3m has been set aside for the Local Area Committees - €600,000 per committee - to be spent at the discretion of each committee on projects such as estates resurfacing, traffic calming, pedestrian crossing, and footpath repair.
City Centre
A pay and non-pay budget has been provided for the new City Centre Development and Operations directorate which has an over-arching vision of enhancing the city.
Economic & Enterprise Development
The budget includes the continuation of the Economic Development Fund with €770,400 set aside, and under the remit of the City Centre Directorate. The importance of the city centre as a critical asset to the economy of the city region is recognised by the provision of €193,500 to support initiatives under a planned new City Centre Strategy.
Climate Action
A second round of the Community Climate Action Fund was launched in October, with implementation expected through to June 2027. The fund remains at €860,000. Provision has been made for the continuation of the bulky goods collection service in 2026.