Offaly County Council receives biggest annual budget allocation ever

OFFALY County Council has received its largest Budget Allocation in its history, since it was founded in 1899. The October monthly meeting of Birr Municipal District was told that amount allocated for 2026 is €98,869,676. Of this, Staff Pay is €36,720,440; Pensioners Pay is €4,729,328; Income related expenditure is €30,127,746; Non discretionary spend is €17,684,278; and Discretionary Spend is €9,607,884.
Ann Dillon, Director of Services, told the October meeting of Birr Municipal District that Offaly County Council’s 2026 Statutory Budget Meeting is scheduled for November 17th; and the In-Committee 2026 Budget meeting is scheduled for November 10th. The national prescribed period for the holding of 2026 budget meetings is November 3rd – November 28th 2025, with the MD meetings to be held from 1st October 2025 to November 11th 2025.
Ms Dillon pointed out that the closure of Shannonbridge Power Plant has resulted in a permanent reduction of €1.7m in rates income for Offaly County Council. Central Government will again fund this shortfall in 2026. Discussions are ongoing with the governmental Department on this issue but currently no permanent long term central funding has been secured to replace this lost income which has arisen directly as a result of the accelerated national decarbonisation agenda.
The Director of Services added that, in addition, there is continued uncertainty with the Rates, as ratepaying businesses cope with continuing business inflation and reduced footfall.
She said the increased borrowing costs of recent years have stabilized somewhat, at a high level.
“The cumulative effect of interest rate rises in the past 5 years still persists,” she commented, “and has significantly increased loan costs of non-mortgage loans for Offaly County Council over this period.
“The Workplace Relations Commission has issued a recommendation on the terms and conditions of retained firefighters, and a final agreement is still being rolled out. The final cost will be very considerable in terms of additional pay costs, new manning level requirements and training and equipment costs.”
OCC has a cumulative current deficit to the end of 2024 of €0.390m. It is anticipated that this deficit will be eliminated in the Annual Financial Statement 2025, barring any major changes in the out-turn between now and the end of the year.
The Director said it is anticipated that there may be some additional rates income buoyancy to report in framing the 2026 rates budget. “The Finance Dept. continue to liaise with the Valuation Office on additional rate certificates for new properties. Other income lines (e.g. Parking Income, Environmental charges) have stabilised in 2025 following the effects of Covid 19. Any increase in grant income will be specifically applied to Grant funded activity. There is not likely to be any significant increase in funds for discretionary spend in 2026.
“Budget 2026 is currently being drafted against a challenging national economic outlook, with funding uncertainty around items like the continuing disengagement with Úisce Éireann, high levels of operational costs (both general and construction) and an extended pay deal for retained fire staff.
“A small increase in the level of LPT funding in 2026 is anticipated and this will be required to meet the funding challenges above. This will be confirmed by Revenue.
“The purpose of this meeting is to consider the budgetary challenges for the coming year and agree the General Municipal Allocation for each MD from central funds proposed by the Chief Executive. Typically, this will be spent on activities like: Community Groups; Christmas Lights; MD Civic Receptions; Local Award Schemes etc and local projects of scale, with a matched funding element. This does not replace the main, strategic, non-discretionary expenditure of the local authority, the spending of which will be prioritised by the members as part of the development of a schedule of Municipal District works after the budget has been adopted.
“Areas such as County Roads, Housing Repairs are allocated after the main Local Authority Budget meeting as in previous years.”
“The County Council is approaching an annual budget of €100m,” commented Cllr Peter Ormond. “We have a huge budget now. Our function today relates to the General Municipal Allocation (GMA) which is just a very small aspect of the overall Council's discretionary fund. The GMA can cover things such as Christmas lights and Civic Events in the commuity; it can cover Community Grants. While small, it's very important to us and I propose we increase it from €200,000 to €210,000.” Cllr John Leahy seconded this proposal.
“The county is going in the right direction,” continued Cllr Ormond, “and the extra funding for the County Council this year will mean a great deal.
“The shortfall of €1.7 million in rates since the closure of West Offaly Power remains worrying and we have to keep fighting that political battle.” Cllr Seán Maher agreed. “We can't be going cap in hand to the government Department year after year. It needs to be fixed down.”

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