Peter Burke (Longford-Westmeath, Fine Gael)
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The Government is making a significant contribution of €333 million in 2023 to support the local government sector, and this represents an increase of €108m year-on-year.

A significant element of this funding is a contribution to local authorities towards pay costs associated with the unwinding of the Financial Emergency Measures in the Public Interest (FEMPI) legislation and National Pay Agreements. There is an increase of €36.8m year-on-year due to the cumulative effect of these increases. This total allocation of €199m will help local authorities ensure that they have the necessary resources, in terms of people, to perform their functions. The allocations per local authority are being finalised currently and will be notified to local authorities in the coming weeks. Furthermore, as has happened in previous years, my Department will be engaging with the Department of Public Expenditure and Reform in respect of any additional pay increases that are confirmed.

The other large portion of this figure is to fund LPT equalisation; to ensure that all local authorities, including those with weaker property tax bases, have a minimum level of funding available to them that is separate to programme funding. The increase in funding to €110m from €34.3m is due to the move to 100% retention of Local Property Tax within the local authority area. As a result, all equalisation funding is now met by the Exchequer. On the other hand, the move to 100% local retention will increase the surplus available to certain local authorities, and therefore increase the requirement of these authorities to self-fund some level of transport and/or housing or other costs previously met by the Exchequer.

My Department has confirmed provisional LPT allocations to local authorities for 2023 as detailed in the table 1 below. As previously, every local authority has the power to vary the basic rate of LPT in their local area and final LPT allocations for 2023 will be confirmed once these decisions are finalised.

Finally, it should be noted that my Department is aware of the current financial environment in which local authorities are now operating. In recognition of the ongoing pressures, support of €60m has been recently secured to assist the sector, which is additional to the increases in funding outlined above. Its purpose will be to assist local authorities in meeting the increasing costs involved in providing a wide range of services. The allocations per local authority are being finalised currently and will be notified to local authorities in the coming weeks.

Table 1 – 2023 Provisional (pre-variation) LPT allocations to local authorities.