Minister acknowledges ‘very real challenge’ of Leitrim Council funding shortfall

Minister for Housing, Local Government and Heritage, James Browne TD, has described the underfunding of Leitrim County Council’s 2027 budget as “a very real challenge,” and said the Department is examining how the issue can be addressed.

The Minister made the comments during a visit to Leitrim on Friday, November 13, when he officially opened two housing developments in Carrick-on-Shannon and Newtowngore, and launched the council’s Heritage Plan 2026 to 2031.

Leitrim County Council’s 2027 budget was approved earlier in the week, on November 9, at the annual budget meeting in Carrick-on-Shannon. The budget totalled €69,762,019.

However, significant concerns were raised at the meeting over a €240,000 funding shortfall, arising from the Government’s failure to cover the full overhead costs associated with the transfer of water services to Uisce Éireann.

Responsibility for water services has been transitioning from the council to Uisce Éireann since 2023. Overhead costs, which were previously recouped from Uisce Éireann, are now being recovered through central Government funding.

However, the Government will fund only around 80 per cent of the total overheads recouped this year, leaving a shortfall of €240,000.

At the November 9 meeting, councillors also expressed concerns that the council could face a further shortfall next year.

Speaking to the Leitrim Observer, Minister Browne said the Department would engage with the council’s representative association to explore how the issue could be addressed.

“It is a very real situation and a very real challenge for local authorities,” said Minister Browne.

“It’s worse for some local authorities than others and I don’t want to see them left short. We’re looking at how we can continue to give funding to local authorities,” he added.

He confirmed that further funding would be provided, saying, “There will be funding again this year. We didn’t secure as much as we would have expected in the national budget but we’re looking through the department to see how we can shore up that funding.”

Minister Browne also said that these stranded costs arising from the transfer of water services “should be washing themselves out and coming to an end.”

Asked how the Government plans to retain young people in rural areas amid the ongoing housing and affordability crisis, Minister Browne said his Department is examining changes to regulations governing one-off rural houses to make it easier to build in rural Ireland.

He also said the Department is looking at changing the rules around local authorities purchasing sites and making them available for housing, as well as helping smaller builders deliver smaller housing developments.

“We were very good at that in the past but I think we got too much regulation in this country and made it too difficult, especially for ordinary people to be able to build homes,” he said.

The Minister said Leitrim County Council has “a strong pipeline” of housing projects, adding, “It’s a positive day opening these new houses, but I want to see an awful lot more.

“The money is there from the Government, the policy is there and we need local authorities to really step up and meet their targets.”