Éamon Ó Cuív (Galway West, Fianna Fail)
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73. To ask the Minister for Housing, Planning, and Local Government the progress that has been made to date in reforming the method of providing Exchequer funding from his Department of local authorities for the years from 2024, taking into account the abolishment of the equalisation fund and revaluation under the local property tax; the criteria that will be used to determine the allocation to each local authority; and if he will make a statement on the matter. [59620/22]

Brendan Smith (Cavan-Monaghan, Fianna Fail)
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80. To ask the Minister for Housing, Planning, and Local Government if he will review the local government fund base which was set in 2014 and needs to be updated to factor in the different costs which have arisen over the past eight years; if he will ensure that adequate support is provided for the smaller local authorities which have a small rates base and a limited ability to raise their own revenue; and if he will make a statement on the matter. [59811/22]

Peter Burke (Longford-Westmeath, Fine Gael)
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I propose to take Questions Nos. 73 and 80 together.

Local Property Tax (LPT) was introduced to provide a stable and sustainable funding base for the local authority sector, and the underlying principle of the current distribution model is that every local authority should have a minimum level of funding, known as the baseline, available to it to support the provision of local services.

The revaluation of Local Property Tax was undertaken by the Revenue Commissioners in November 2021. As committed to in the Programme for Government - Our Shared Future, the move to 100% retention of LPT will take place in 2023; providing for all money collected locally to be retained within the area. This will be done on the basis that those counties with a LPT yield lower than their baseline, continue to be supported via annual equalisation funding. This will ensure that all authorities continue to receive, at a minimum, an amount equivalent to their baseline. For 2023, equalisation funding of €118m will now be met by the Exchequer, an increase of nearly €84m from 2022.

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 intends to commence a comprehensive review of the LPT allocation model shortly, and this review is expected to conclude in time for the 2024 LPT allocations. With a particular focus on the baseline funding of individual authorities, all potential criteria to determine allocations will be considered in the course of this review, which will involve consultation with relevant stakeholders.