Property tax and commercial rates to remain static

Two decisions made by Meath county councillors this week will bring much-needed relief to struggling householders and business owners – the local property tax (LPT) won’t be increased for next year and commercial rates will stay at their present level.

The councillors voted overwhelmingly not to increase the LPT despite a call from council chief executive, Fiona Lawless, to increase the basic rate of property tax by 15 per cent. Sinn Fein councillors said they were against all property tax and looked to the Government to increase the amount of grant aid to the county council, said to be one of the lowest-funded counties in the State.

One councillor, Paddy Meade, wanted the council to increase the tax by five per cent so that improved gritting services could be provided in winter. However, he failed to get a seconder for his proposal. Council finance officer Sheila Harkin delivered a presentation on the LPT. A decision on the tax is a reserve function of the councillors.

The council has not increased the LPT since its introduction in 2015. Ms Lawless said the council was funding a number of funding challenges particularly in relation to rising energy costs, price inflation, supply chain issues and the increasing demand and expectation for service delivery from the local authority. In addition, there were 25,000 extra people living in the county since the last census in 2016.

She said the council’s objective was to protect and maintain core services amid the ongoing uncertainties which the council faced. Based on the latest information from the Revenue Commissioners a decision to increase LPT by 15 per cent would generate extra income to €2.7m in 2024.

Three political groupings on the council – Fine Gael, Fianna Fail and the Technical Group – were in favour of leaving the LPT at its current rate. Three Sinn Fein councillors and Cllr Meade voted to vary the rate. SF Cllr Michael Gallagher had proposed a 10 per cent cut in the rate. Submissions on what should be done about the tax were invited from the public. There were 23 submissions, with 19 people seeking a reduction in the tax and four to leave it unchanged.

Fine Gael whip on the council Cllr Gerry O’Connor said he could not support any increase in the LPT because of the current energy prices, the housing crisis and the rent crisis. Sinn Fein Cllr Michael Gallagher said his party was looking for a 10 per cent cut. The cost of living was one major factor in people’s struggle to live, he said.

Independent whip on the council Cllr Brian Fitzgerald said that, like Cllr O’Connor, he could not look for an increase in the tax. In fairness to the council it had maintained that figure from the very beginning while other councils were implementing reductions.

He said he took into account that the council, was looking at a potential deficit of €2.1 million based on current figures available to the council. There had to be increases in council salaries, and other increases as well and these had to be catered for. There had be no increase in commercial rates for the last 10 or 12 years. He hoped that hey would receive increases in the grants the council had applied for and to which it was entitled.

Fianna Fail whip Cllr Damien O’Reilly said he was in favour of leaving the LPT as it was. They had an extra 25,000 people living in the county who would be looking for extra services. Social Democrat Cllr Ronan Moore said that he, too, felt that the current rate of LPT should be maintained.

Independent Cllr Alan Lawes said he wanted a 10 per cent decrease in LPT. There seemed to be embarrassment on the council to call the Government to account. “Our Government left Meath at the lowest council receiving funds from them for many years. Why would you not call them out on this? We should be looking for extra funds. Every year we keep passing a budget and failing to call on the Government to give us more funding.”