Businesses in the city and county will face much of the same challenges in 2025 that they did in the year that’s in its dying days. But increases in commercial rates by both Galway City and County Councils will add an additional burden next year that has some concerned will tip them over the edge.

County Councillors approved a hike of around 15% in their rates earlier in December – alongside incentive schemes that will provide for smaller increases in the small and medium enterprise sector.

In the city, councillors eventually conceded to a 6% hike in the rates after weeks of negotiations – defying Council official’s insistence that a 15% rise was needed.

Interim CEO of Galway Chamber, Deirdre Mac Loughlin, said these hikes would undoubtedly put pressure on businesses in the New Year, but there was also a recognition that investment was needed.

“In the city, to get 6% is better than 15% and the Chamber does recognise that this will place a burden on all ratepayers. But they recognise the need for investment – the need for new roads, footpaths and cleaning the streets to make Galway a place people want to visit,” she said.

Ms Mac Loughlin praised both the City and County Council for high levels of engagement prior to the increases, but said in the case of the city, 15% was too high – and more incremental increases were better for businesses.

“There has been no rates increase [in the city] since 2016 – that was probably not the wisest move. Somebody should have been thinking ahead.

“I feel that this can never be forgotten again – leaving it from 2016 to 2024 is madness,” she said.

The past year had presented several significant challenges to business, said Ms Mac Loughlin, one of which was increasing levels of regulation around climate action.

“In the Chamber, we started a Sustainability Committee in May or June and the buy-in from businesses is unreal.

“This is a very positive sign and it shows pride in business,” she said, adding that most businesses want to increase their sustainability but might need support in getting there.

“What we do is have events to let them know what grants are available to them and give a heads-up on regulations that are to come,” continued Ms Mac Loughlin.

Staff recruitment has been a recurring issue in recent years, particularly in and around Galway – and housing shortages are a contributory factor to that.

The Chamber’s Interim CEO said she believed the key to increasing the availably of housing for workers was to provide affordable student-specific accommodation.

“In Galway City, we have 30,000 students who will come and go every year, and we need appropriate accommodation for them. Students want affordable accommodation and they don’t want to be paying a fortune to stay in the estates that should be freed up for workers,” she said.

As for opportunities in the New Year, Ms Mac Loughlin said the nighttime economy could provide a huge boost for Galway if it were to continue to expand.

Some efforts have been made in recent times by Galway City Council to host events in the city after dark, but the number of businesses remaining open late, outside hospitality remained very small.

“We haven’t fully got where we need to be with the nighttime economy. When you go down the town at night, there isn’t much open.

“We need to look at that. People want to eat late, have a coffee and stick around. And if they could do that, it would boost other businesses in retail,” she said.

Pictured:  Galway Chamber Interim CEO, Deirdre Mac Loughlin, pictured here at the announcement of her appointment with former Chamber President Eveanna Ryan.