Councillors adjourn meeting after failing to agree 2026 budget

Donegal County Council has adjourned its budget meeting to Wednesday, 3 December, after councillors failed to agree majority support for the €224 million package laid before them by council officials on Friday.

The sticking point, as it has been so often in recent years, is a proposed increase in commercial rates collected from around 5,500 businesses across the county.

Council officials had proposed a 5.5% rise, estimated to raise €1.76 million next year, but that does not appear to have found favour with councillors.

The meeting was adjourned around noon on Friday, with councillors breaking into party and independent groupings to hold a series of meetings with officials to discuss elements of the budget. The meeting was later adjourned to next month.

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In the morning session, where details of the budget were laid out by senior officials, chief executive John McLaughlin and finance director Richard Gibson repeatedly emphasised that the commercial rate has remained unchanged since 2019, while the council’s purchasing power has been significantly eroded by inflation in the intervening years.

Mr McLaughlin said the council is providing more services and supports than ever but is doing so with less money in real terms.

Mr Gibson said commercial rates are, in absolute terms, lower today than they were in 2008. He said the council’s spending power had dropped by around 30% over that 18-year period, which he described as constituting a level of support to businesses.

The finance director noted that hospitality and retail businesses represent almost half of all ratepayers in the county and pay around one-third (€13 million) of all commercial rates collected. By contrast, 45 commercial ratepayers operating windfarms and utilities account for less than 1% of total accounts but contribute 37% (€14.7 million) of the overall commercial rate take of €39.5 million.

He further outlined that more than a quarter of businesses in the county pay less than €1,000 in commercial rates each year and would face a maximum increase of just 96 cents a day, or €50 annually, if the proposed increase is approved.

Another 40% of ratepayers pay less than €3,000 annually, leaving them with a maximum annual increase of €150, or less than €3 per day.

Private discussions between councillors in their political groupings and senior officials failed to resolve whatever issues they considered most important.

While councillors have adjourned their debate until Wednesday, 3 December, they must agree a budget no later than midnight on 4 December.

Should they fail to do so, the Minister for Housing and Local Government will step in and make the decision for them.

Last year, councillors required three meetings before passing the budget. Back in 2014, they held marathon sessions including 21 adjournments before finally approving the budget at the 11th hour.