Rate and property tax hikes to deliver €1 million a year in Laois

Homeowners and businesses in Laois are expected to fork out an additional €1 million a year in Local Property Tax(LPT) and rates between 2027 to 2029.

Th LPT has been raised from 15 to 20 percent over its baseline. It was agreed at the September meeting of Laois County Council and together with a planned rate rise it will mean an additional €333,000 will be available to each of the three Municipal Districts annually in the county over the next three years.

The issue was discussed at the latest meeting of Borris-in-Ossory Mountmellick Municipal District in Portlaoise when Councillors were asked to approve their discretionary budget for the year 2027.

In total each of the six Councillors are allocated €31,000 a year which they can put towards community facilities and projects.

In 2026, the Municipal District had a fund of €186,000 available. Of this €136,000 was allocated by Councillors to roads, footpaths and lighting while €50,000 went to community projects including burial ground maintenance. The Councillors were asked to approve a draft budget allocation for the same amount of €136,000 for 2027.

However, Cllr James Kelly said it wasn’t enough and more funds were needed. “We are being told her that inflation is at 27 percent so we are not getting any bang for our buck,” said Cllr Kelly.

He asked about the increase in Local Property Tax which had been approved at the last Council meeting.

Cllr Conor Bergin said the Council’s annual budget is over €100 million and the allocation for discretionary funding was just 0.2 percent of that. He asked for an increase. “The demands that are on us are huge,” said Cllr Bergin. “I certainly think it should be topped up by 10 percent,” he said. His suggestion was seconded by Cllr John King.

Director of Services Angela McEvoy said she would note that the draft budget was acceptable subject to a 10 percent increase.

Cllr Kelly asked about the additional money which had been promised from the LPT rate increase.

Ms McEvoy said the money was going to be spent in the Municipal District but not through discretionary budget.

Cllr Paddy Bracken said his understanding was that the additional money was to be spent at the discretion of the Councillors.

Cllr Kelly told the meeting that the Borris-in-Ossory Mountmellick area had more roads than the other districts in Laois. “We have the biggest area and we are the poor relation,” he said.

Cllr Ollie Clooney said inflation nationally is running at four percent yet the Council is being told “inflation on roads is 27 percent….we are in the wrong game so we are.”

Acknowledging the good work that was being done, Cllr Bracken said costs were constraining the work that could be done. He questioned the cost of traffic management for works.

Senior Executive Engineer Rory O’Callaghan said “traffic management would be a big cost” and he estimated that it ran to around 10 or 15 percent of the overall budget for works.

Head of Finance Julie Bergin joined the Council meeting remotely to address some of the issues raised by Councillors. She said the rises would generate around €1 million which would be divided equally between the three Municipal Districts and spent on works including for local roads and footpaths. She said it had been agreed that the money allocated to the districts would be spent in agreement with the local engineer.