Local Property Tax rate to stay unchanged despite Council chief’s plea

Councillors have agreed to keep the Local Property Tax (LPT) rate unchanged – despite pleas from management that Galway County Council is predicted to spend at least €22 million more than it brings in for the next two years.

County Chief Executive Jim Cullen had recommended an increase of 15% on the LPT rate for 2023 and 2024 – amounting to €2.1m extra in the coffers annually – which would bolster its case when it came to pleading for a greater share of funding from central government.

In an estimation of income and expenditure for the Council, taking into account “unavoidable” expenditure and income changes set to hit, the Council would run a deficit of €9.04m in 2023 and 13.2m in 2024 – well over €22m unless there was a change in finances.

“I am hopeful of an uplift in baseline [funding] levels . . . we cannot continue to ignore the fact that other councils have raised LPT and their citizens enjoy a better standard of services that in Galway,” he stressed.

He told a meeting this week that €9m would be needed to maintain services next year at the same level as 2022. This was due to significant cost increases given that inflation is reaching 9.6% currently. Pensions, gratuities and payroll increases from the national pay agreement, increments and additional staff were all adding to bigger outgoings.

Without that extra funding, it will be necessary to reduce spending by that amount with a negative impact on service and staffing levels, he said.

This is a shortened preview version of this article. To read the story, including the councillors’ discussions, see this week’s Connacht Tribune. You can buy a digital edition HERE.