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10 Sept 2025

Offaly County Council facing significant funding shortfall for 2021

Offaly County Council facing €1.5m shortfall

Offaly County Council could face major financial difficulties if €1.5 m in compensation is not paid by central government

Offaly County Council face a potential €1.5m shortfall for 2021 if the Department of Housing Local Government and Heritage (DHLGH) do not compensate the Council for additional Covid related expenditure in 2021 and for loss of goods and services income as a result of the pandemic in 2021.

Head of Finance with Offaly County Council, Mark Connolly said funding was provided in 2020 but, ''no confirmation of similar funding for 2021 has been given yet. ''

This is not just an issue for Offaly County Council but is a local government issue. There are ongoing negotiations with the DHLGH in trying to resolve the matter, he said.

Mr Connolly said: ''This would most likely push Offaly County Council’s financial outturn for 2021 into a deficit position. This in turn would have an impact on future budgets as we try to eliminate our cumulative deficit going forward.''

Mr Connolly moved to clarify the issue after Councillor Frank Moran noted that a document from Mr Connolly distributed at the monthly Municipal District meeting mentioned that there was a significant doubt whether the funding will be provided.

''The 2020 figure was allocated from central government of €1.3m to the local authority. So what doubt is there?'' asked Cllr Moran. ''There should be no doubt whatsoever. That funding should be provided to Offaly County Council for the period 2021.That doubt that central government is not going to provide it will be a huge hit to Offaly County Council when it comes to the budget,'' he said.

Councillor Neil Feighery said the money had already been approved and Minister Peter Bourke had announced it ''two days ago.''

However, Mark Connolly has clarified that the money referred to by Cllr Feighery was €1.7m associated with the closure of Shannonbridge Power Station. He said the rates from the power station were worth 1.7m to Offaly County Council annually.

However, the Department of Housing, Local Government and Heritage (DHLGH) has confirmed that the shortfall in rates income for Offaly County Council for 2022 due to the Shannonbridge Power Station closure will be funded by Central Government again in 2022 as it was in 2021.

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