Mayor of Limerick proposes rates rise for local businesses in Budget 2026

MAYOR John Moran is set to propose a commercial rates rise of 6% on businesses in Limerick in Friday’s local authority budget.

It comes against a backdrop of what he previously warned would be an “austerity” book of estimates, where the council is facing an €8m deficit.

The commercial rate is a charge levied on business owners based on the size of the property they operate from.

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Hiking this is often politically unpopular, with retailers facing into the headwind of declining trade.

In a document made public on Friday last, Mayor Moran outlined his proposed budget was prepared “in very difficult circumstances” for council, and he had to recommend “difficult decisions” for 2026.

“The most significant is to increase the commercial rate level by 6%,” Mayor Moran wrote.

However, he outlined a number of protections put in place for operators of small and medium sized businesses, which could see them avoid the rates rise, or only pay a portion of it.

Significant cuts are being proposed in road transport and safety, according to the book of estimates prepared by the mayor.

Spending for the dressing of regional roads, plus their overlay is set to drop, if his recommendations are approved.

Similarly general improvement works to local roads are proposed to be down, as is funds for public lighting improvement.

Spend in street parking operation is set to fall, as is the operation of the street cleaning service, if Mayor Moran’s budget is approved.

“The overall objective of the budget preparation has been to maintain existing services to a high standard, implement mayoral programme enhancements while also enhancing resources in key priority areas, and ensure council fulfils its statutory and regulatory obligations in an environment of increased costs and limited funding,” he wrote.

Speaking to Limerick Live about the budget at Friday’s Chamber awards, Mayor Moran defended the proposed rates rise, pointing out that for seven of the last eight years, they have been frozen.

“When you have to do a budget like this, for me, it is always important to protect the most vulnerable people. That includes the vulnerable businesses, which are the small business owners,” he said.

He said he initially was looking at a rate rise of over 10% but looked at alternative measures to bring it to a 6% increase.

However, Limerick Chamber, which represents more than 400 local businesses has lodged a formal objection to the rates hike.

The group believes the increase will impose an unsustainable financial burden on the local business community.

Sean Golden, chief economist and director of policy at Limerick Chamber said: "The proposed 6% 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 council to urgently revisit this figure and move towards a more reasonable compromise."

Analysis from the chamber suggests the increase will disproportionately impact key sectors.

They velieve some anchor retail tenants in the city centre could face increases in their rate demand of up to €3,000, annually.

"Some small firms may be pushed beyond the €30,000 rateable valuation threshold, losing their eligibility for the rebate scheme and facing an effective rates increase of over €3,000. Furthermore, some of the region’s largest employes could see their rates increase by more than €50,000," he said.

Limerick Chamber called upon the elected members and executive of Limerick City and County Council to negotiate a reduced commercial rates figure for 2026.

The budget meeting starts at 10am on Friday morning in County Hall, Dooradoyle.