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Local Government Fund

Dáil Éireann Debate, Wednesday - 16 October 2019

Wednesday, 16 October 2019

Ceisteanna (275)

Eoin Ó Broin

Ceist:

275. Deputy Eoin Ó Broin asked the Minister for Housing, Planning and Local Government the details of the €27 million reduction to local government as detailed in budget 2020. [42483/19]

Amharc ar fhreagra

Freagraí scríofa

The Government is providing €156 million to support local authorities through the exchequer contribution to the Local Government Fund (LGF) in 2020. On a like-for-like basis local authorities will be in receipt of €23 million more in funding in 2020 when compared to 2019. The extra €23 million represents an increase of 27% in exchequer support for local authorities to meet additional pay and pension costs arising from national pay agreements.

While there is a headline reduction on the 2019 budget allocation of €185m, this is due to a reduction in the exchequer supports required by local authorities in 2020. The realignment of support for Local Government in 2020 is largely as a result of the valuation of Irish Water as a global utility liable for commercial rates from 2020. As a consequence of this, there is no longer a requirement for general water rates compensation in 2020. The Department is actively monitoring the financial impact of this transition on individual local authorities in the context of their overall financial position.

It is expected that the LGF will make Local Property Tax (LPT) allocations of €516.8m in 2020 (up from €503m in 2019). The increase in LPT allocations is accounted for, in the most part, by the decisions of 19 local authorities to increase their LPT rates above the basic rate for 2020.

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