DONEGAL County Council approved its 2026 budget following a day of lengthy talks on Thursday, with members voting to retain commercial rates as they are.
The budget meeting had broken up without agreement on Friday, November 21 after members had refused to accept the executive’s recommendation that commercial rates be increased by five per cent.
The meeting had been due to reconvene on Wednesday, but was adjourned for a day to allow members attend the funeral in Ballyshannon of former County Manager, Michael McLoone.
The Budget meeting eventually reconvened on Thursday and at the end of a day of adjournments and negotiations, a motion allowing for 0 per cent increase in commercial rates was proposed by Cllr Michael McBride.
A counter motion, tabled by Cllr Ciaran Brogan, was defeated by 20 votes to 15 with one abstention, meaning Cllr McBride’s motion was carried.
To stay within the initial €224 million budget, the council will cut spending across several areas including tidy towns projects, housing maintenance an climate action programmes.
The 100% Redress Party was among those who voted against the proposed increase in commercial rates.
Speaking following Thursday’s meeting, Cllr Ali Farren said the 2026 budget is already larger than last year’s.
“The 100% Redress Party believe this is not the time to place another financial burden on our business community at a time when many are fighting to keep their doors open,” Cllr Farren said.
The party condemned comments made during the budget meeting, claiming that a Fianna Fáil councillor tried to blame opponents of the rates increase for the lack of maintenance on social homes affected by defective concrete blocks.
The party described the remarks as disgraceful, misleading and a blatant attempt to shift attention away from the true cause of the crisis which is Government failure.
The maintenance budget for social housing has risen in the budget for 2026, although not by the full amount that would have resulted from the commercial rates increase.
The party stated firmly that this must not be used to justify loading additional costs onto businesses.
“How can anyone look a business owner in the eye, someone who may be watching their own premises crumble with no supports at all, and tell them they must now pay higher rates to cover Government mistakes?,” Cllr Tomás Seán Devine said.
“It is beyond unfair.
“It is morally indefensible.”
The 100 Percent Redress Party also noted the clear and unequivocal warning issued by the Letterkenny Chamber of Commerce in their letter to all councillors ahead of the budget vote.
In that letter, the Chamber stressed that local businesses are already operating under extreme financial pressure due to rising costs, minimum wage increases, auto enrolment, inflation and declining consumer spending.
The Chamber urged councillors to reconsider the increase.
The Party stressed that the root of the crisis lies in the Government underfunding of councils.
The Government must face the reality that councils cannot continue operating under chronic underfunding,” Cllr Denis McGee said.
“If the Government want local authorities to deliver essential services, then it must resource them properly.
“The solution is not to impose higher commercial rates on already struggling businesses but for central Government to fund councils fairly and directly.”
