Local Authorities
Seanad Éireann — 2026-04-16
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Robert Troy (FF), Longford-Westmeath

I thank the Senator. We get visitors in Mullingar and Athlone as well. When she was going through all the regional towns, she forgot to mention some of mine.
I thank her for once again giving me the opportunity to update the House today on behalf of the Department of Housing, Local Government and Heritage on local authorities’ powers to raise revenues annually. I know this is an issue on which the Senator has been extremely active and vocal.
The system of funding local government in Ireland is a complex one, as local authorities derive their income from a range of local sources including commercial rates, charges for goods and services provided and local property tax as well as grants from various Government Departments and State agencies. On average, in 2024, nearly 50% of local authorities’ revenue income was generated locally. This locally raised income is crucial as it funds the operation of local authorities and their core service provision. A fundamental prerequisite for effective local democracy is that elected councils have a strong measure of financial power and discretion and corresponding responsibility.
In line with commitments in the programme for Government, a local democracy task force was established with the local government sector to finalise a programme for the reform and strengthening of local government. The terms of reference for the task force, agreed by the Government, set out an ambitious and detailed work programme relating to structure, finance, functions and the governance and accountability of all local authorities. The task force was specifically asked to consider ways for local authorities to increase fiscal autonomy through the number of own resources by reviewing existing revenue-raising and debt management options and new or alternative revenue-raising powers. The task force examined ways in which local authorities can better leverage existing sources of income, local authority borrowing, decision-making with regard to local property tax and potential new sources of income for local authorities. The task force has submitted its report to the Ministers in the Department, who are considering the range of recommendations and intend to bring it to the Government for consideration along with a high-level implementation plan shortly.
The task force specifically considered if local authorities should be able to introduce a charge on overnight stays in their areas, noting the Government’s previous agreement to same. In June 2025, the Government noted the report of the interdepartmental group on the Dublin city centre task force and approved the overall approach set out in that proposed roadmap for delivery of the Dublin city task force report. The interdepartmental group recommends that a detailed proposal for an accommodation tax at a national level, applicable to all local authorities on an opt-in basis, be developed by the Department of Enterprise, Tourism and Employment and the Department of Housing, Local Government and Heritage. Work on the proposal is being progressed by both Departments in conjunction with the oversight board that is in place to oversee delivery of the roadmap for Dublin city.

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Record URI: https://data.oireachtas.ie/akn/ie/debateRecord/seanad/2026-04-16/debate/main
Retrieved: 2026-08-14T04:54:49+00:00
Sitting date: 2026-04-16