Written answers

Wednesday, 17 September 2014

Department of Environment, Community and Local Government

Local Government Fund

Photo of Brian StanleyBrian Stanley (Laois-Offaly, Sinn Fein)
Link to this: Individually | In context | Oireachtas source

1544. To ask the Minister for Environment, Community and Local Government if allocations to local authorities from the Local Government Fund will remain the same as in 2014 for 2015. [34030/14]

Photo of Tommy BroughanTommy Broughan (Dublin North East, Independent)
Link to this: Individually | In context | Oireachtas source

1605. To ask the Minister for Environment, Community and Local Government when all local authorities will be informed of their allocations for 2015 which they will receive from the Department under the Local Government Fund. [34752/14]

Photo of Alan KellyAlan Kelly (Tipperary North, Labour)
Link to this: Individually | In context | Oireachtas source

I propose to take Questions Nos. 1544 and 1605 together.

Local Property Tax was introduced to provide an alternative, stable and sustainable funding base for the local authority sector, providing greater levels of connection between local revenue raising and associated expenditure decisions. Given that local authorities vary significantly from one another in terms of size, population, public service demands, infrastructure and income sources, the Government has decided that no local authority will receive a lesser allocation from LPT in 2015 than they received from the Local Government Fund in 2014. 80% of LPT will be retained locally to fund vital public services in 2015. The remaining 20% will be re-distributed to provide additional funding to certain local authorities that have lower property tax bases due to the variance in property values across the State.

Certain local authorities, with stronger property bases, will receive additional income in 2015 from LPT compared to their 2014 General Purpose Grant. The Government has decided that these local authorities will use this surplus funding in two ways, with a portion available for their own discretionary purposes and the remainder, if any, to fund some services in the Housing and Roads areas for which they currently receive Central Government funding. The portion that will be retained for discretionary purposes by these authorities will be an amount equal to 20% of the total expected LPT income in their respective areas (before any decision to vary rates) or, in the case where that surplus will be less than 20%, the full amount. It will be a matter for the individual local authorities to decide how to spend that discretionary funding.

Local authority elected members have been given the power to decide whether or not to increase or decrease LPT rates by up to 15% for 2015 and must inform the Revenue Commissioners of their intentions by the end of September. In the event that a local authority decides to increase LPT rates, they will retain 100% of the additional LPT collected. Where a local authority decides to reduce LPT rates, the full cost of that reduction will be reflected in a reduced LPT allocation to that local authority.

I have advised local authorities of their individual provisional LPT allocations for 2015. This information has been provided at this early stage in the budget process for 2015 in order to ensure that local authorities have sufficient detail available to inform their decision-making in respect of LPT rate variation for 2015, which must be completed and notified to the Revenue Commissioners by 30 September 2014.

Comments

No comments

Log in or join to post a public comment.