As many as 86 Galway City businesses could be facing into their last Christmas – as the Grinch-like local authority plans a 15% increase in commercial rates to cover the cost of hiring 55 new staff.

Negotiations between senior management and elected members of Galway City Council on a Budget deal for 2025 are expected to go down to the wire this Friday after councillors failed at their Monday meeting to agree a financial package for the year ahead.

If city councillors do not pass a balanced budget by midnight Sunday, the Minister for Local Government has powers to dissolve the Council, which would spark a fresh Local Election.

This should focus minds ahead of a third draft Budget meeting this Friday, where the ruling pact of Fianna Fáil, Labour, Sinn Féin, and Independents hold power, but have yet to agree a budget.

The main sticking point is plans to hike commercial rates by 15%; this is on top of rates revaluations in recent years that also increased costs for many city businesses.

Chief Executive Leonard Cleary and Director of Finance Helen Kilroy presented a Draft Budget that includes an additional €6.3m in income from increased commercial rates from businesses.

But for the second Budget meeting in a row on Monday, the ruling Pact did not bring it to a vote because it did not have sufficient support to pass.

Councillors have been told to find €6.3m in savings and cutbacks in the Draft Budget if they don’t increase the rates.

Councillor Níall McNelis (Lab) said there were 3,200 city ratepayers – and 86 of them will go to the wall if their rates go up.

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