Ivana Bacik (Dublin Bay South, Labour)
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166. To ask the Minister for Housing, Planning, and Local Government if funding from the Local Government Fund for local authorities that retain 100% of the local property tax revenues will be reduced; the allocations from the Local Government Fund for 2022 by local authority; the projected allocations in 2023, in tabular form; and if he will make a statement on the matter. [49104/22]

Peter Burke (Longford-Westmeath, Fine Gael)
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Local Property Tax (LPT) allocations for 2022, amounting to €523.9m, are based on the 80:20 local retention model. These allocations include the Exchequer contribution to equalisation funding of €34.3m. Detailed information in respect of the 2022 LPT allocations broken down by local authority, are available at the following link on my Department's website: www.gov.ie/en/collection/ea27d-local-property-tax-allocations/.

In line with the commitment in the Programme for Government – Our Shared Future, the LPT allocation mechanism for 2023 is changed to allow for 100% of the estimated yield to be retained locally within the local authority area where it is collected. All equalisation funding will now be met by the Exchequer, to ensure that all authorities receive, at a minimum, an amount equivalent to their Baseline. Accordingly, no local authority will see any reduction in their pre-variation LPT allocation for 2023.

In addition, a move to the 100% local retention model will lead to an increased surplus for those authorities with LPT income above their funding baseline. 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 in 2022 to 22.5% next year. The remainder of the increased surplus will be used to self-fund housing, roads or other services in the local area.

My Department has confirmed provisional LPT allocations to local authorities for 2023 amounting to €617m as detailed in the table below. As previously, every local authority has the power to vary the basic rate of LPT in their local area by up to 15%. If a Local Authority decides to vary the LPT basic rate downwards (by up to 15%), the resultant loss in LPT income is reflected in a proportionate reduction in discretionary income for the Council. Likewise, if a local authority decides to vary the rate upwards, there will be a proportionate increase in such income. Those variation decisions are not reflected in the 2023 provisional allocations in the table below. Local authorities have until 15 October to confirm whether or not a LPT local adjustment factor should apply in their individual local authority areas in the coming year. Accordingly, final LPT allocations for 2023 cannot be confirmed until those decisions are finalised.

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