Councillors reject rates increase and opt for eighth year of freeze

Councillors have rejected a proposal from Donegal County Council officials to approve a 5% increase in commercial rates for 2026, instead voting to freeze them for an eighth consecutive year after a day of adjournments and behind-the-scenes negotiations at County House in Lifford.

When proposing an overall budget package of €224 million at a meeting last month, council chief executive John McLaughlin and finance director Richard Gibson had set out the case for a 5% increase, but Thursday’s reconvened budget meeting rejected that out of hand.

A compromise 2% increase - which, the meeting heard, would cost 90% of Donegal commercial ratepayers €200 a year or less - was also rejected on a vote of 20 to 15.

Sinn Féin, 100% Redress and Labour councillors, along with several Independents, voted against the increase; Fianna Fáil, Fine Gael and other Independents voted in favour. One councillor abstained and one was absent.

After a series of adjournments through the day, councillors decided at teatime to retain the 2025 commercial rate, a move that will shave almost €2 million off the €224 million budget proposed by officials.

Council officials said the decision means there will be €550,000 less for maintenance of social housing stock, €110,000 less for public lighting, and €72,000 less to distribute among tidy towns groups in 2026 than had been budgeted for, while the local authority’s capacity to borrow to help fund major regeneration projects will also be reduced.

Read more: Funeral of former DCC county manager Michael McLoone held in Ballyshannon

Councillors met in public session shortly after 10.15am on Thursday but adjourned soon after. Following a brief return before lunchtime, they adjourned again until 5pm.

On their return, Cllr Michael McBride (Independent) proposed a rates freeze, while Cllr Ciaran Brogan (Fianna Fáil) proposed a 2% increase.

Cllr Brogan said the modest increase was reasonable and would allow the council to invest in the county. He was supported by Fine Gael’s Martin Harley.

Cllr Frank McBrearty (Independent) criticised the 2% proposal and those who proposed it, while also raising questions about the council’s cash reserves and legal costs.

Opposing the increase, Sinn Féin group leader Cllr Gerry McMonagle said improved funding for Donegal County Council was the responsibility of central government, which was enjoying record tax revenues. He said businesses would inevitably pass the increase on to consumers, who were already struggling with the cost-of-living crisis.

At around 6pm, Cathaoirleach Paul Canning called for a vote.

Cllr McBride proposed the rates freeze, while Cllr Ciaran Brogan made a counter-proposal of a 2% increase.

A vote was taken on the counter-proposal first.

Those voting in favour of the 2% increase were: Liam Blaney, Manus Boyle, Ciaran Brogan, Jimmy Brogan, Paul Canning, Donal Coyle, Martin Harley, Jimmy Kavanagh, Donal “Mandy” Kelly, Martin McDermott, Patrick McGowan, Declan Meehan, Anthony Molloy, Michael Naughton and Martin Scanlon.

Those voting against were: Joy Beard, Brian Carr, Terry Crossan, Tomás Devine, Albert Doherty, Gary Doherty, Ali Farren, Martin Farren, John Shéamais Ó Fearraigh, Noel Jordan, Niamh Kennedy, Frank McBrearty Jnr, Michael McBride, Michael McClafferty, Pauric McGarvey, Denis McGee, Michael McMahon, Gerry McMonagle, Dakota Nic Mheanman and Jack Murray.

Cllr Micheál Choilm Mac Giolla Easbuig abstained, while Cllr Fionán Bradley was not present for the vote.

With the counter-proposal defeated by 20 to 15, Cllr McBride’s motion to freeze commercial rates was carried.

Councillors also completed two other pieces of rates-related business at Thursday’s meeting. They unanimously approved a 100% rates refund for vacant properties, and also approved a rates rebate for businesses that paid in full by 31 October 2026.