Sinn Féin, who are part of the controlling group on Waterford City and County Council, say they will not vote for a commercial rate increase when they meet to agree a budget tomorrow.
Michael Walsh is to propose a five per cent rate increase to try to plug a €1.3m deficit due to the revaluation of Irish Water rates.
Sinn Féin Councillor Conor McGuinness says they also won't vote for any cuts to funding for festivals, road maintenance, disability access works, and climate action projects.
Brian Tynan from Phelan's Pharmacy on Michael Street says businesses are struggling in Waterford City Centre and won't be able to absorb a rates hike:
"A lot of retailers have actually closed. I would see on Michael Street for example, we're nearly at the levels of peak recession time with the number of closed units on the street. We would have been at full capacity 12 months ago and we're now down to around 7 units. It is tough going at the moment as well so obviously there would be serious concerns with possible rates increases again."
