Frank Feighan (Sligo-Leitrim, Fine Gael)
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1021. To ask the Minister for Housing, Planning, and Local Government the reason for the reduction of funding for smaller local authorities particularly the reduction of €1.3 million to Leitrim County Council in funding in 2025 under the Equalisation Fund (details supplied) . [58209/25]

James Browne (Wexford, Fianna Fail)
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I assume the question is referring, for the most part, to annual Local Property Tax (LPT) allocations from the Local Government Fund. At the outset, it is important to note that LPT funding allocations are decided in accordance with Government approved distribution policies, and are based on the baselines and estimates of the yield in individual local authority areas. Under the LPT allocation model, every local authority has a minimum level of funding available to it, known as the baseline. If the estimated LPT yield in a local authority area is lower than an authority’s baseline, the authority is topped-up or equalised to that baseline by the Exchequer via the Local Government Fund. Accordingly, the equalisation funding requirement varies from year to year. The specific amount is the shortfall between the baseline and the estimated yield in a local authority area.

Local authority baselines for 2024 were adjusted in accordance with the recommendations of the 2023 Baseline Review working group. Every authority, including Leitrim County Council, received an increase in baseline funding of at least €1.5m. Building on the baseline increases of 2024, local authorities will see further increases in 2026, which will ensure that any benefit from the revaluation of LPT will go directly to the sector where it is needed. Accordingly, Leitrim County Council’s baseline is increased by an additional €0.2m for 2026, thereby resulting in an overall baseline increase of €1.7m or 19% since 2023.

Furthermore, local authorities may vary the rate of LPT in their administrative area by up to 15% of the basic rate of the Tax. The decision to vary must be taken by resolution of the Council. If a local authority decides to vary the LPT basic rate upwards; 100% of the resultant additional income is available for the authority's own use. Similarly, if an authority decides to vary the LPT basic rate downwards (by up to 15%), the resultant loss in LPT income is reflected in reduced LPT funding to the authority. The power to vary LPT rates enables elected members to directly influence the level of LPT income they have to meet their expenditure requirements.

The table below sets out a summary of the LPT allocation process in respect of Leitrim County Council for the years 2023 to 2026.

Detailed information regarding LPT allocations to all local authorities, is published by my Department at the following link: www.gov.ie/en/collection/ea27d-local-property-tax-allocations/

I acknowledge the current financial environment in which all local authorities, are operating, and the pressures facing them in respect of general inflation and higher costs. Every effort has been made to provide support to the sector in the delivery of its functions.

Since 2009, my Department has made financial support of over €100 million available to assist local authorities in meeting the unbudgeted costs of clean-up and necessary immediate works, including for exceptional overtime payments, the hire of plant and heavy machinery, the purchase of materials required for the clean-up and the hire of contractors associated with significant severe weather emergency events.

This is in recognition of the exceptional nature of the activities carried out by local authorities in responding to these types of emergencies and the fact that the costs of these un-programmed activities could not be foreseen in annual expenditure planning. This practice is considered a vital enabler to underpin a rapid response by local authorities.

In the context of Storm Éowyn and the exceptional nature of the response and humanitarian assistance activities carried out by local authorities, clearly the costs of these activities were not budgeted for within existing resources. My Department has collated costs from all local authorities in relation to severe weather responses earlier this year and, in consultation with the Department of Public Expenditure, Infrastructure, Public Service Reform and Digitalisation, is working with local authorities to address relevant unbudgeted costs. This process should be concluded shortly.

It should be noted that funding the repair of public infrastructure is undertaken by the relevant Department in line with its sectoral responsibility. Capital costs associated with infrastructural damage, for example damage to the roads network and coastal protection infrastructure (where necessary), are funded under relevant sectoral arrangements.