Dáil Éireann Debate, Tuesday - 7 July 2026
487. Deputy John Connolly asked the Minister for Housing, Local Government and Heritage the full funding provided to each local authority under the local government fund including whether the local authority was a beneficiary of the equalisation fund; and if he will make a statement on the matter. [51698/26]
Amharc ar fhreagraThe Local Government Fund (LGF) was established in 1999 and is used mainly to allocate Local Property Tax (LPT) to local authorities, and to assist the sector with increased pay and pension costs arising from the implementation of National Pay Agreements. Funding is also provided for stranded costs arising from the water services transformation process, miscellaneous schemes and other exceptional allocations. While a large portion of the income of the LGF is made up of LPT yield, a significant annual contribution is made from the Exchequer. The LGF accounts are audited by the Comptroller and Auditor General and are available at the following weblink: www.gov.ie/en/department-of-housing-local-government-and-heritage/collections/local-government-fund-accounts/.
Details of the full funding provided to each local authority from the LGF for 2025 is set out in the table below, broken down by the main funding categories.
As regards equalisation funding provided to certain local authorities as part of the LPT allocation process, it is important to bear in mind the context of this funding. Under the current LPT allocation model, every local authority has a minimum level of funding available to it, known as the baseline. There are variances across the country in terms of LPT yields but it is important that all local authorities receive at least this baseline level of funding to help ensure they can deliver adequate levels of service. Equalisation ensures that all 31 local authorities receive a minimum amount of funding from the local retention of LPT that is at least equivalent to their LPT 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. The Exchequer contribution towards the shortfall in equalisation funding for 21 local authorities is €142.3m for 2026.
Detailed information regarding LPT allocations for each year, LPT baselines and equalisation funding, where applicable, is published by my Department at the following link: www.gov.ie/en/collection/ea27d-local-property-tax-allocations/.
