Galway Council Cuts Commercial Rates Amid Parking Charge Hikes

URGENT UPDATE: Galway City Councillors have just revised their 2026 budget, significantly cutting commercial rates while increasing parking charges, raising immediate concerns among local businesses. In a heated session last night, city management initially proposed a budget with a €20 million increase in spending, primarily driven by a 13% hike in commercial rates and higher parking fees.

In a surprising turn, the ruling coalition of Fianna Fail, Sinn Fein, Labour, and two Independents voted to cap commercial rates to an inflationary 3%. Parking charges will increase from €2 to €2.50 per hour, while the daily rate will drop from €12.50 to €10. The monthly parking rate remains unchanged at €100.

Officials assert that these changes aim to support local businesses and protect jobs amidst rising costs. However, critics argue that the budget cuts could have detrimental long-term effects. The council has made significant reductions, including a €465,000 cut to retrofitting public buildings and €835,000 scrapped for a payment incentive scheme for ratepayers.

City officials expressed disappointment over the last-minute alterations, highlighting the potential risks of short-term solutions. They acknowledged that while the ruling coalition exercised democratic rights, the financial implications could be severe.

Looking ahead, the council will need to explore new revenue sources, including increased levies on derelict sites and potential dividends from Galway Port, to achieve a balanced budget for the following year.

With the community divided over the council’s decisions, the impact of these changes will resonate across Galway. Residents and business owners are urged to stay informed as the council navigates the challenges ahead in this newly adopted budget.