Major rates changes agreed in Westmeath County Council budget

At its annual budget meeting on Monday, the members of Westmeath County Council approved a 10% commercial rates increase for next year - though the local authority argued that increased grant supports meant most small and medium-sized businesses would see their rates bills go down rather than up in 2026.

The council said larger businesses would pay more in commercial rates next year, and that these additional revenues were needed to support the county's strategic infrastructure programme.

The General Annual Rate on Valuation (ARV) - the multiplier figure which is used to calculate commercial rates bills - has been set at 0.2134 in Westmeath next year, which is lower than neighbouring counties: Longford (0.2647), Roscommon (0.2362), Laois (0.2217) and Offaly (0.2198).

That ARV represents a rates increase of 10 per cent from last year's figure.

However, council members were told by chief executive, Barry Kehoe, that an increase in the Commercial Rates Grants Scheme for businesses with rates bills under €5,500 meant that 80% of businesses in the county would actually see their rates bills reduce slightly.

The council said the grants available to small and medium-sized businesses under the Commercial Rates Grant Scheme were being increased from 6% to 15%, with the maximum grant rising from €300 to €825.

It said this change was brought in "at the request of the elected members, who are keen to see small and medium-sized businesses protected from any increase" in their rates liabilities.

Before this week, there had been no increase in the commercial rates multiplier in the county since 2020.

At the meeting in Mullingar, a budget of €129.4 million was adopted by the members of Westmeath County Council for 2026.

The €129m figure is made up of €65.4m in State grants, €14.3m from the local property tax, €20.5m from rates, and the final €29.2m from other sources

The budget figures include the increased revenue arising from the council’s earlier decision to increase the Local Property Tax (LPT) by 15% for 2026, which will bring the authority’s LPT allocation to €14.33 million, which includes €5.72 million in equalisation funding due to the county’s below-baseline LPT yield.

Members were informed that the council continues to rely heavily on central Government for housing, roads and community programme funding, and the budget notes that “sustained Government support” was essential given the scale of national policy commitments.

Director of finance, Michael Hand, said that the council's budget had risen by €43.2m in the past five years and that the overall increase in the budget for 2026 was €12.2m more than last year's figure of €117.6m.

Housing remains the single largest pressure facing the authority, accounting for €38 million in planned spend next year.

Over 4,232 households in Westmeath currently receive some form of social housing support, whether direct provision, Housing Assistance Payment (HAP), RAS and Leasing schemes, and housing loans. The council also administers housing grants for older people and those with disabilities.

Mr Kehoe told the meeting that the council is on track to deliver 213 new social homes in 2025, with another 351 under construction, but stressed that “much more needs to be done” to meet Westmeath's share of the Government’s new Delivering Homes, Building Communities 2025–2030 strategy.

The policy aims to produce 300,000 homes nationwide by 2030, including 72,000 social units.

Councillors were told that the cost of delivering social housing had risen substantially, with typical construction costs increasing by approximately 40-50% since 2018.

Mr Hand told members that rental income was budgeted to increase by 12.7 per cent, based on the current average rent of €86 per week together with the implementation of a rent review in 2026.

He also revealed that the council had budgeted for 1,052 properties being rented from the private sector.

Transport and roads account for €29.2 million in expenditure next year, with national and regional road maintenance continuing to absorb a significant share of the budget. Over €12.7 million is earmarked for local road reconstruction, surface dressing and improvement works.

Transport Infrastructure Ireland (TII) allocations of €17.8 million support the county's 2026 roads programme, while car parking income is expected to generate €1.98 million.

Recreation and amenity services (€15.2 million) and environmental services (€13 million) are also substantial areas of spend.

A €700,000 provision is included for strategic property acquisition for community and recreational purposes in Athlone, Mullingar and Castlepollard.

Members learned that the council is budgeting for significant payroll pressure in 2026. National pay agreements will contribute to an increase payroll costs by an estimated €7.95 million, funded through an allocation from the Department of Housing, Local Government and Heritage.

The council's figures also revealed that there are currently 366 former employees in receipt of a pension from the council, with a current annual cost of circa €5.3m. The average pension is €14,497 with 269 pensioners in receipt of a pension of less than €20,000 per annum.

The council's budget for 2026 includes enhanced provisions for arts and cultural development, with increased funding for Mullingar Arts Centre, the Dean Crowe Theatre, and other cultural facilities.

The budget also provides for additional staff positions across many departments including to strengthen planning enforcement, expand library services, support regeneration projects, enhance transportation infrastructure and improve corporate services.