Donegal County Council overcome rates impasse to pass 2025 budget at third attempt

Donegal County Council’s revised budget for 2025 was passed on Thursday after a proposed hike in commercial rates was shelved. 

Councillors railed against a proposed rate increase of 4.47% increase to commercial rates.

That proposed rise would have meant income to the tune of €41,600,783, but many elected representative were unwilling to agree to increase rates.

After two adjournments earlier in the month, Councillors converted at the County House in Lifford and rubber-stamped a revised document that has a total spend of €198.9million - a €13.3m increase in expenditure.

Senior Council officials worked to reduce proposed spending by around €1.5million with some cost-saving measures also introduced to offset the commercial rates remaining as they are.

Cathaoirleach of Donegal County Council, Councillor Niamh Kennedy, thanked Richard Gibson, the Council’s Director of Finance, his team and the Council Executive for taking members’ concerns on board.

“I do feel that everyone’s queries and concerns were listened to,” she said. “The overall increase in expenditure has been achieved without an increase in commercial rates for our county’s businesses.”

Councillor Kennedy said the Council listened to both communities and business and “stood firm” for a zero increase on commercial rates for 2025. While John McLaughlin, the Chief Executive, said in his introduction in the budget book that an increase in commercial rates was needed as “the spending power of money in 2019 has now been greatly reduced given the levels of inflation and cost pressures in recent years”.

The rates, however, will not be increased for a seventh successive year.

“The Executive did hear our message loud and clear,” Councillor Kennedy said. “The recent rates revaluation determine that small businesses can’t be differentiated from larger businesses and we had to show our support for the smaller businesses.”

Cathaoirleach of Donegal County Council, Councillor Niamh Kennedy

The budget meeting was adjourned on December 2 and again on December 9 before Councillors gathered for a third meeting on Thursday in Lifford.

Fianna Fáil Councillor Ciaran Brogan, who told the meeting “we are living in good and exciting times in this Council”, seconded a proposal from Councillor Kennedy to pass the budget.

“It is a very positive message that we are sending out to business people, that we recognise the challenges that they face,” Councillor Brogan said. “It his important for us going forward that were get a balanced budget that allows us to be innovative and also address the basic bread and butter of housing, roads and ensuring adequate resources in those areas to meet priorities.”

Sinn Féin Councillor Gerry McMonagle said the budget, one of the highest ever moved by Donegal County Council, was “very positive”. 

Labour’s Councillor Martin Farren and Fine Gael Councillor Jimmy Kavanagh praised the decision not to add a rise to commercial rates without seeing a major reduction in spending on services.

Milford-based Independent Councillor Declan Meehan said the Council should look at some sort of scheme that will insulate and protect small and medium business. Councillor Meehan said that the Council ought also be able to exercise its powers in order to “raise amounts from those who are well able to pay”.

Donegal County Council Chief Executive John McLaughlin

That point was echoed by Mountcharles Independent Councillor Jimmy Brogan, who added: “We need to find some way of separating the two so that the big businesses can pay plenty”.

A €2,000 per annum increase to the Members’ Development Fund was applauded by Independent Councillor Michael McBride. The total amount now allocated to the Members’ Development Fund is €370,000 for 2025.

However, Councillor McBride cautioned that, in relation to the overall budget, “€200m doesn’t have the same spending that it once had. Small and medium enterprises are telling us that while gross profit in their businesses are quite decent, the net profit isn’t and because of overheads they are struggling to pay the bills. So, this sends out the right message.”

Joy Beard of the 100% Redress party said she could not, “in good conscience” support the budget.

While welcoming no increase on commercial rates, Councillor Beard said there was “deep concern” at what she called a lack of supports within the budget for victims of the defective concrete blocks scandal.

“This is a humanitarian crisis that depends urgent attention, yet many critical areas of concern remain unaddressed, which is deeply troubling. This budget fails to provide the deep-needed support. This budget denies them the resources and assistance that is urgent required, essential lifelines for families whose lives and homes are crumbling down around them.”

Raphoe Independent Councillor Frank McBrearty remarked that the budget was proposed without members having been given then amendments: “A very dangerous trend”, he said. 

Councillor McBrearty said he was “very disappointed ted that a mask has been put over the budget”. 

Councillors Meehan, Beard, Tomas Sean Devine and Jimmy Brogan also noted that the amended figures had not been seen before the revised budget was proposed.

West Donegal Independent Councillor Micheál Choilm Mac Giolla Easbuig said he would not support the budget “on a point of principle”.

The revised figures were included in a presentation to elected members by Mr Gibson.

A bad debt provision was reduced significantly, moving in line with income from commercial rates staying at their current level.

Among the amended figures were: A €50,000 adjustment, from €750,000 to €700,000 in relating to a painting programme for Council houses; an adjustment of €40,000 on signage replacement; A drop of €50,000 on a proposal to renew the national inventory of national heritage, which has now been paused for next year; The library book fund will now be allocated €47,000 rather than the €97,000 originally planned; a net change of €140,000 for greenways and cycle path upkeep; and the allocation for parks and open spaces will now be €150,000 instead of €200,000.

Mr McLaughlin said the budget was a “very challenging one” in the midst of the effects of high inflation costs over the last three years and the consequential cost on running the business of the Council. 

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He added: “However, it is a time of great opportunity for Donegal and this Draft Budget is structured to do the very best for Donegal and its place to drive the development of the wider North West Region.”