Kieran O'Donnell (Limerick City, Fine Gael)
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Under the current Local Property Tax (LPT) allocation model, every local authority is entitled to receive a minimum amount of funding under the LPT allocation process, known as the baseline. A working group, which included representatives from the local government sector, was set up earlier this year to review and establish a new model to determine LPT baseline funding levels. The review identified that the baseline funding of some local authorities needed adjustment according to the criteria recommended by the working group. The increase in baseline funding has been guided by the review that has taken place and the recommendations of the working group.

Furthermore, I committed to ensuring that every authority receives an increase in baseline funding in 2024 of at least €1.5m. Accordingly, the overall LPT Baselines of Local Authorities in 2024 will be increased by €75.4m from €353m to €428.4m.

Because of the anticipated increase in LPT yield in 2024, the increased net cost of raising the baseline by €75.4m, is €48m. This is made up of increased equalisation requirement of €31.2m, and reduced self-funding benefit to the Exchequer of €16.8m.