Dublin City Council has voted narrowly in favour of a €7.6 million cut in the 2009 budget.
The budget was passed by 28 votes to 22.
Most Fine Gael and Sinn Féin councillors decided yesterday to jointly oppose the cut which represents 6.8 per cent of the council's funding from the Local Government Fund from the Department of the Environment.
The budget contains a proposal to reduce investment in infrastructure by more than €330 million over the next three years. Projects that will be hit include the regeneration of Cork Street and improvement programmes in Coolock, Rialto, Inchicore and Smithfield.
The council will increase spending on services but at the lowest rate in several years. The budget for 2009 expenditure will be €928.7 million, a rise of just 1.5 per cent. This year's budget had represented an 8 per cent increase on 2007.
The council is hoping for an additional €15 million by increasing commercial rates by 3.3 per cent, which would bring such earnings to €324.29 million.
