Councillors break rank to vote against LPT rate hike

Decision taken by elected members at Monday's meeting.

Local Property Taxes are set to increase across County Cavan after councillors approved a further 10 per cent variation on the tax in a vote that saw some government party councillors breaking ranks to go against the proposal. The increase, which will take effect next January, will generate almost half a million euro for council coffers, which is set to be ringfenced for repairing and maintaining the county’s roads.

For two in three households in Cavan, the increase translates to less than €10 per year.

The vote saw Fine Gael councillors, in particular, split over the controversial increase. The decision to increase the tax was taken at last Monday’s meeting, September 14, following a change to legislation allowing local authorities to vary the basic LPT rate by up to 25 per cent, up from the previous maximum variation of 15 per cent.

Chief Executive Eoin Doyle told elected members that the additional 10 per cent would generate an extra €457,530 annually. He said councillors also had to consider the authority’s financial position from 2027 onwards, including inflationary pressures, costs arising from Workplace Relations Commission decisions relating to the fire service and the additional cost of taking on staff previously employed by Uisce Éireann.

Mr Doyle noted that 100 per cent of LPT collected in Cavan remained in the county, and said the intention was to “ringfence” the additional monies for the repair and maintenance of local roads.

Under the increase, approximately 67 per cent of households will pay an additional €9.50 a year, or around 18 cent a week; while a further 20 per cent will pay an additional €23.50 annually, equivalent to approximately 45 cent a week.

The proposal to increase the LPT variation to 25 per cent was proposed by Fianna Fáil councillor John Paul Feeley and seconded by Fine Gael's Trevor Smith.

Sinn Féin councillor Damien Brady however proposed that there should be no change to the LPT for the coming year. He said the tax had already been increased in 2024 and should remain at its existing level.“We shouldn't be punishing homeowners for a lack of funding coming into the county,” he said.

His Sinn Féin colleague Noel Connell agreed.

“Hand on heart, I can't go back to my constituents and say this to them,” he said, referring to families already enduring cost of living pressures or while the school bus transport issue continues with no resolution in sight.

Cllr Connell also criticised Government spending priorities, arguing that more should be done to support people in Ireland before further funding is committed overseas to countries like Ukraine.

“We have to look after our own before we start sending out foreign.”

When the proposal went to a vote, Fine Gael councillors Winston Bennett, Carmel Brady, Niamh Brady and Trevor Smith voted in favour, along with Fianna Fáil councillors John Paul Feeley, Áine Smith, Niall Smith and Philip Brady, who arrived shortly before voting took place.

The proposal was opposed by Sinn Féin councillors Damien Brady, Stiofán Conaty and Noel Connell, as well as Fine Gael councillors T.P. O'Reilly and Val Smith and Aontú councillor Adrian Rogers.

Independent councillor Brendan Fay abstained from the vote.

Fianna Fáil councillor Clifford Kelly was absent, while Independent Ireland councillor Shane P. O'Reilly arrived at the meeting soon after the vote had concluded.

Following the vote, Mr Doyle thanked councillors for the considered manner in which they had approached the decision. He acknowledged it had “not been an easy one” but said he believed it was a “prudent” approach going forward.

“Regardless of the outcome, what we have seen today is democracy at work,” he told councillors.

Mr Doyle said the additional local contribution would allow the council to make tangible improvements to the county’s road network, while further strengthening its case to Government for increased national funding for roads.

While the additional €457,530 a year will not meet the county’s overall road funding requirements, the council has committed to ensuring that the additional revenue raised through the LPT increase is directed towards local road improvements.