Councillors opt for no increase in basic Local Property Tax rate for 2022

Householders in Westmeath can potentially look forward to a 15 percentage point reduction in their Local Property Tax (LPT) bill for 2022 compared to this year after members of Westmeath County Council voted for no increase to the basic rate of tax for the coming year.

During a one and a half hour debate at the July meeting of the local authority, which was divisive and ill-tempered at times, councillors accepted a proposal from Cllr Ken Glynn to retain the basic rate of LPT for 2022, which was seconded by Cllr John Shaw. A counter-proposal from Cllr Louise Heavin, to maintain the increase of 15% which was imposed last year, received no seconder.

The issue is complicated by the fact that the Government plans to introduce changes to the existing Local Property Tax system, including a revaluation of properties on November 1, which will also impact on the bills of local houseowners.

Amid allegations of point scoring and personality politics, councillors opted to reject a very clear recommendation from the council’s Chief Executive, Pat Gallagher, that the increase in the basic rate of LPT applied in 2021 be retained in 2022. Last year, the council opted to increase the basic rate by 15%.

Throughout the course of the meeting, the council’s Director of Finance, Jimmy Dalton repeatedly outlined the reasons why the council executive were recommending that the LPT rate for 2022 be retained at 15% and he told councillors, in no uncertain terms, that the local authority was “only in its infancy” with regard to a large number of regeneration projects across the county that would need to be financed. He also reminded them that the council has received formal approval for a number of Just Transition Projects, which would cost circa €400,000 and added that “in the absence of an alternative form of funding the burden will fall to the annual budget.”

In his covering letter to members on the LPT issue, Chief Executive Pat Gallagher stated that “It is my clear recommendation to you that the increase in the basic rate of LPT applied in 2021, be retained for 2022” and pointed out that this would result in the vast bulk of property owners in Westmeath incurring no additional charge for 2022.

Mr Gallagher said the decision on LPT represents “an important first step” in the annual budget process and added that it has taken on “a greater level of importance” due to the impact of the pandemic which continues to have severe implications for the finances of the council.

A counter-proposal from Cllr Louise Heavin, to maintain the increase of 15% which was imposed last year, received no seconder despite the fact that a number of Fine Gael members had earlier argued that the 15% increase imposed last year should be retained in an effort to maintain services at their current level.