Fianna Fáil block increase in local property tax for 2020

Fianna Fáil members on Cavan County Council, backed by three others, have blocked a rise in property tax in County Cavan in 2020. This was in spite of strong recommendations from the Council executive that an increase was necessary to continue to deliver and improve vital services and infrastructure across the county.

The deputy county manager, Eoin Doyle, had sought a 15% increase at the September monthly meeting held in Council chambers on Wednesday afternoon of last week.
All the Fine Gael councillors had backed the executive in seeking the rise.
However, the seven elected Fianna Fáil councillors, backed by Independent councillor Brendan Fay from Belturbet; Cllr Sarah Reilly, Aontú and Cllr Paddy McDonald (SF) voted against the proposal, so it was defeated by 10 votes to 7. 
Any resolution to vary the rates of property tax in the county had to be done before September 30, 2019.
Mr Doyle said that the latest estimate from the Revenue Commissioners of annual income from LPT for Cavan in 2020 is €4.4M and Cavan County Council has been further advised by the Department of Local Government that they will receive a further allocation of €9.4M, which is on a par with the 2019 grant.
 
He said that 80% of LPT income generated in County Cavan amounts to €3.5M and they receive a subsidy €5.9million under equalisation to address this funding gap.
Mr Doyle had highlighted that a rise of 15% in the tax would have only seen an increase of €1 a week in almost 98% of households in County Cavan.
By contrast, that increase would generate an additional €669,661 in revenue for the local authority.
 
“The impact of no increase in the local adjustment factor in respect of the LPT will be significant. The impacts could include potential reductions in discretionary expenditure for example on roads, libraries, arts, tourism and other crucially important areas”, explained Eoin Doyle.
“It could lead to failure to attract matching funds – to successfully capture national funding – for example Urban and Rural regeneration funds,” warned Mr Doyle.
 
He further pointed to a significant deficit in relation to housing maintenance, which "will not be sorted without a further injection of funds”.

After an adjournment, the Fine councillors proposed the increase, as recommended, following input from members from right across the political spectrum in the chamber.
The roll call vote was taken and the proposal was defeated by three votes.
For full debate, see next week's print edition of The Anglo-Celt.