John Connolly (Galway West, Fianna Fail)
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485. To ask the Minister for Housing, Planning, and Local Government the details of the determinants for the allocation made to each local authority through the local Government fund; and if he will make a statement on the matter. [65015/25]

John Cummins (Waterford, Fine Gael)
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The Local Government Fund (LGF) was established in 1999 and now is used primarily to distribute Local Property Tax (LPT) to local authorities, which accounts for approximately 7% of the sector's revenue income. While a large portion of the LGF is made up of LPT yield, an annual contribution is made from the Exchequer towards LPT equalisation, increased Pay and Pensions costs associated with national pay agreements, miscellaneous schemes and any other exceptional allocations that may be required. The determinants of each allocation are as follows:

Local Property Tax; there are variances across the country in terms of LPT levels but it is important that all local authorities receive at least a baseline level of funding to help ensure they can deliver adequate levels of service. For this reason, all authorities receive a minimum amount of funding from LPT that is at least equivalent to their baseline, and the baseline is therefore a significant benchmark affecting the level of funding available to each local authority for its ‘own use’. Following a review in 2023, baselines for each local authority were adjusted in accordance with five criteria: population, area, deprivation levels, an authority’s locally raised income and achievement of National Policy Priorities, with every authority receiving a minimum increase of €1.5m. This led to an overall baseline increase of €75.4m in 2024. Building on the baseline increases of 2024, there will be a further increase of €42m in 2026, in line with the expected increased yield from revaluation, expected in each local authority area. In addition, the allocation model for 2026 is changed to allow those authorities with an LPT income above their baseline to retain a greater portion of the surplus for their own use, increasing from 22.5% to 31% of overall yield. Both changes together will lead to an increase in own use funding in the overall sum of €85.4m.

Two-thirds of local authorities need equalisation support to bring their income from LPT yield up to the baseline level. The remaining authorities receive an LPT allocation equivalent to expected LPT yield in that authority.

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, the resultant loss in LPT income is reflected in reduced LPT funding to the authority.

Detailed information regarding the LPT allocations, including equalisation support provided, each year since 2020 is published by my Department at the following link: www.gov.ie/en/collection/ea27d-local-property-tax-allocations/.

National Pay Agreements; a large portion of the annual allocation from the LGF is towards assisting local authorities with the cumulative effect on pay costs arising from National Pay Agreements since 2016. The increase each year is calculated by assessing the cumulative impact of the pay agreements for the year, using the most recently available payroll data for the sector. The allocation in 2026 will be €517.8m, and the increase year-on-year is distributed based on the authority’s share of permanent employees. The 2025 and provisional 2026 allocations are attached.

Once Off Support; the Fund has provided once-off support for exceptional events that impact the sector. For example in 2020, 2021 and Q1 2022, the LGF supported local authorities and local businesses with the Covid rates waiver/credit in lieu scheme, and lost income and extra costs due to the pandemic, at a cost of €1.4bn to the Exchequer. In 2023, the Fund also assisted the sector with rising costs, in particular rising energy costs, providing €60m for this purpose. In 2024 and 2025, there were allocations of €90.4m and €85m respectively, to pay stranded costs in association with water sector transformation. The determinants for the allocations made to each local authority for once-off support depends on objectives and criteria of the individual schemes.

Miscellaneous Schemes; the Fund supports a number of smaller projects (i.e. Miscellaneous Schemes) across the local government sector, with €26.7m being provided for this purpose in 2025, and 2026 figure to be confirmed shortly. The allocation is demand-led, and supports initiatives such as Creative Ireland, compensation for loss of commercial rates under Just Transition and Local Government Management Agency Innovation and Reform Projects.

John Connolly (Galway West, Fianna Fail)
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486. To ask the Minister for Housing, Planning, and Local Government the total funding allocation provided to each local authority under the local Government fund for 2024 and 2025, in tabular form; and if he will make a statement on the matter. [65016/25]

John Cummins (Waterford, Fine Gael)
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The Local Government Fund (LGF) was established in 1999 and now is used primarily to distribute Local Property Tax (LPT) to local authorities, which accounts for approximately 7% of the sector's revenue income. While a large portion of the LGF is made up of LPT yield, an annual contribution is made from the Exchequer towards LPT equalisation, increased Pay and Pensions costs associated with national pay agreements, miscellaneous schemes and any other exceptional allocations that may be required. In 2024 and 2025 there were allocations of €90.4m and €85m respectively to pay for stranded costs in association with water sector transformation.

See below the total funding allocation provided to each local authority under the Local Government Fund in 2024 and to date in 2025.