Offaly businesses facing commercial rates hike

A FIVE per cent increase in commercial rates is being proposed in next year's Offaly County Council budget.

The hike is being attributed to fears the county's local authority will be hit with a €1.7m decline in rates revenue in 2027 because of the closure of the ESB's West Offaly Power peat-fired electricity generation station in Shannonbridge.

Offaly County Council's coffers have been cushioned in the past from the full effects of that loss of rates by direct government injections of funding.

However, council chief executive Anna Marie Delaney has issued a stark warning in her statement announcing a draft budget of €102m for 2026.

“With regard to the loss of rates income as a result of the closure of West Offaly Power at Shannonbridge, the Department of Housing Local Government and Heritage have confirmed central government funding for 2026 to Offaly County Council in compensation for the loss of this rates income,” said Ms Delaney.

“However, they have also reiterated that this is unlikely to continue into the long-term, so this situation needs to be managed in order to ensure financial resilience for the council, and to minimise the consequences of any sudden shocks.

“Offaly County Council remains committed to supporting local communities, maintaining service levels and investing in the County, however there is a limit to what can be done within the income levels currently available, especially with a potential loss of income of €1.7m in 2027 in respect of West Offaly Power. As such this budget provides for an increase of 5% on the Annual Rate of Valuation from 0.2198 to 0.2308.”

The council chief added however that the local authority's corporate policy group, which includes Cathaoirleach Cllr John Leahy, discussed the matter and agreed that ratepayers whose annual bill is less than €10,000 will be offered an early-payment discount of 5%.

This discount will be capped at €500 and will only be handed out to those who pay their rates in full on or before September 30 next year.

“This discount will not be available to the larger ratepayers,” said Ms Delaney. There is a New Business Rates Waiver Scheme in the 2026 budget.

It is anticipated that commercial rates will provide the council with 25% of its income next year.

The council chief says housing is the priority for 2026 with increased funding for repairs and maintenance.

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Spending on housing and building by the council has more than doubled in the last five years, going up from €13m in 2022 to a proposed €26.9m in 2026.

Housing is the single biggest category in the council's revenue spend, which at a projected €102m for next year will have soared by 41% in five years.

Ms Delaney listed the key spending changes for 2026 as a significant increase in the housing budgets, covering pre-lets, planned maintenance, traveller accommodation, homelessness, and tenant-in-situ; followed by additional expenditure on the roads and street-sweeping programmes; higher provisions for libraries, including an increase to the book fund and building maintenance.

The draft budget also maintains a provision for the non-pay element of taking-in-charge of estates, more funding for public realm maintenance, higher spending on playgrounds management, plus an increased pot for heritage projects.

Along with the €102m on delivery of services, an estimated €55m will be spent on infrastructure through the capital programme in 2026.

The three years including 2026, 2027 and 2028 will see capital spending of €208m and nearly one-third of that will be on housing.

“The projected expenditure underpins this Council’s commitment to deliver a meaningful housing programme in accordance with Government Policy and Housing for All. The overall objective of this programme is to maximise housing supply and the availability of suitable accommodation for households unable to provide accommodation from their own resources; along with the provision of high-quality housing to purchase or rent at an affordable price,” said Ms Delaney.

Some of the housing projects lined up between now and 2028 are Beechwood Court in Daingean (10 houses), Dargan Drive, Tullamore (20 houses), 45 units at the convent land in Portarlington, 10 in Ballycumber, two at Elderberry Drive in Moneygall and nine at MacGregol, Birr.

A budget briefing for councillors was scheduled for Monday (November 10) in advance of the statutory budget meeting which takes place next Monday, November 17.