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.
Local Government Fund 2024 and 2025