Longford will face 'tsunami' of business closures if ten per cent rates hike is passed, meeting hears

Local authority chiefs had proposed the increase to meet the demands of an “unprecedented” €64m budget next year brought about by increased expenditure of almost €3.3m allied to inflationary pressures and cost of living crisis.

Acting Head of Finance Fema Flanagan said the introduction of a business support scheme would help offset the increases faced by smaller ratepayers despite adding over €260,000 to the local authority’s annual costs base.

Those calls, however, fell on deaf ears as councillors from all sides of the chamber aired their displeasure over the planned hike.

“I think a lot of discussion has to take place before we get there,” said Independent Cllr Gerry Warnock, when addressing concerns about how best to balance next year’s budget.

Cllr Warnock said in his view, councils like Longford had been “let down” by Leinster House chiefs in meeting the onerous financial challenges posed by one of the worst energy crises this country has ever borne witness to.

“We are a public service, not a corporate entity,” he argued. “The last thing we want to see if a knock on effect and decrease in spending to key frontline service departments.”

Fine Gael group leader Cllr Colm Murray said the €620,000 gap between income and expenditure while considerable, was not significant when weighted alongside the council’s planned €64m outlay across eight service divisions next year.

He said despite the promise of a rates discount scheme, the potential challenges a ten per cent increase in rates to local businesses day to day cashflow demands was not a risk he was prepared to take.

His Fianna Fáil opposite number, Cllr Seamus Butler offered up a similar view, stressing the imposition of such a rise could spark a “tsunami” of business closures next year.

Councillors Paul Ross, Mick Cahill and Martin Monaghan were equally outspoken with the latter shedding light on his own day to day headaches as a local business owner.

“A rate increase at this time will simply send out the wrong message,” he said, adding that like the UK, Ireland was quite possibly facing the onerous prospect of an imminent recession.

“Being a ratepayer myself, I am very worried as to what is coming down the road over the next six to nine months,” he said.

Councillors are to hold a further meeting on Friday in a bid to secure agreement over balancing next year’s budget.