"All Optics"- Waterford businesses hit back at Chief Executive's plan to raise rates

Waterford City and County Council Chief Executive Sean McKeown has recommended that commercial rates be raised by 3.5% ahead of the council’s statutory budget meeting on Wednesday.

In a message seen by the News & Star, Mr McKeown said the raise was in line with the Consumer Price Index and necessary “to protect and sustain essential local services that directly support our business community”. 

“This is, in effect, a cost-stability measure, ensuring the Council can continue to sustain and enhance the high standard of service delivery expected of Ireland’s best place to live,” Mr McKeown said.

The move comes as retailers across Waterford City criticised the Council for a perceived failure to support SMEs.

A coalition of around 90 city centre retailers, named the ‘Waterford Business Group’, accused Mr McKeown and the wider Council of being “so far out of touch” with the business costs associated with running an SME.

Managing Director of the Book Centre, Maeve Ryan, labelled Mr McKeown’s statement as “all optics". Commercial rates in Waterford currently stand at .2978 ARV (Annual Rate Valuation). That means if a business property is valued at €10,000, that business must pay the council €2,978 per year.

Waterford’s commercial rates currently stand as the highest in Ireland. 

Mr McKeown argued that Waterford’s .2978 ARV was a misleading statistic due to the lower property rate valuations found in Waterford compared to other parts of Ireland.

The council’s share of annual income derived from commercial rates has declined from 25% in 2017 to 20% in 2024. Businesses said that figure would only worsen if commercial rates increase and force more businesses to close.

Under Mr McKeown’s proposal, a business with a 2026 rates demand of €5,000 or less will not pay increased rates if they sign up to the PPI (Prompt Payment Incentive) by May 1.

Mr McKeown said that 71% of Waterford businesses have a rates bill of €5,000 or less. The business group argued that most city centre businesses fall above this threshold.

The coalition called on elected councillors to resist rate increases and adopt a freeze on businesses.

“We remain committed to continued collaboration in the interest of sustaining a vibrant, competitive, and resilient Waterford city centre. 

But the immediate priority is ensuring that businesses can survive into 2026,” the statement said.