Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source

I thank Deputy McAuliffe for his question. I acknowledge that all 31 local authorities have passed their budgets. This is a huge achievement by the sector in very challenging circumstances. We continue to support them in doing this. Local property tax was introduced to provide a stable and sustainable funding base for the local authority sector, providing greater levels of connection between local revenue and associated expenditure decisions. Local property tax broadens the tax base by reducing the level of central funding required by local government.

As committed to in the programme for Government, Our Shared Future, the move to 100% retention of local property tax will take place in 2023. A move to this model will lead to an increased surplus for those authorities with local property tax income above their funding baseline, such as Dublin City Council and Fingal County Council. These authorities shall now retain a greater proportion of that surplus for their own use in 2023; an increase from 20% of the overall yield this year to 22.5% next year.

A comprehensive review of the local property tax baselines is under way and is expected to conclude in advance of the local authority budget process for 2024. This review will take into account the overall funding position of all local authorities and the self-funding requirements will be considered in this context. Any proposed change to the current model will need to take into account the needs and resources of all local authorities, including those that have less ability to raise income and will need to be considered within the parameters of the national fiscal and budgetary situation and the competing priorities presenting themselves at a national level.

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