Laois County Council's €124 million budget inflated by pay rises and higher costs

County Councillors have given the green light to Laois County Council to spend €124 million in public money to provide council services next year.

The total approved is nearly 9% up on the 2024 budget when €114 m was allocated. It is just over 5% on the €118 m the council anticipates it will have spent on day-to-day spending this year. The overrun is largely due to an increase in cost of business grants to €3.1 m.

In a sign of improved public finances and rising costs, the money set aside for next year is more than €70 m greater than a decade ago when spending was governed by austerity measures imposed to recover from the banking crash recession.

The spending plan was presented this week to councillors for approval by the local authority’s interim CEO Simon Walton. Its preparation was led by the acting Director of Services for Finance Julie Bergin.

Housing and building makes up the biggest spending area with €38.4 m allocated. Roads and transport is the second biggest area with €31 m allocated. MORE BELOW PICTURE.

Pictured: Simon Walton, Interim CEO, Laois County Council.

Pay rises and higher costs represent half of the €10 m extra allocated. Mr Walton said rising costs make up €2m of extra spending while National Pay Agreement salary rises will cost €2.9 m.

Mr Walton said housing is a key focus of spending next year. He said the budget also supports job creation, economic development and enterprise, public amenities, and a range of other areas.

Mr Walton said the budget aims to enhance the quality of life in Laois.

The Acting Director of Finance Ms Bergin, thanked staff and councillors for their work on the budget which she described as a ‘positive budget’ due to the increase in funding.

She said extra properties and the completion of the rent review would yield €480,000 extra to the council from council homes. She said an extra €3.9 m extra is available to the council under the Croí Cónaithe scheme. This allows the council to support people who want to renovate vacant homes.

The council is set to lose €315,000 in income due to the loss of a commercial customer for the Kyletalesha landfill.

Mr Walton said there was no change in the commercial rates charged to businesses, making it the eighth consecutive budget when the rate was not altered.

Rates income is expected to yield €15m next year with money from the Local Property Tax rising by about €300,000 to €12.4m due to an increase in the charge sanctioned by councillors earlier in 2024.

Government funding makes up €70m of the council’s budget.

County Councillors welcomed the funding allocated and the work done in preparing the spending plan.

Public representatives raised issues ranging from footpaths to public lighting. There were calls for more money to be allocated to support people who want to renovate vacant housing.