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Clare County Council adopts budget for 2021

2 December 2020

Clare County Council has adopted its revenue budget for 2021.

The revenue budget provides for expenditure of €131m, an increase of €3m over the previous year, with projected capital expenditure of €393m over three years (conditional on income, grants and matching funding).

Against the backdrop of the ongoing economic challenges posed by Covid-19, a key objective of Budget 2021 is to maintain continuity of services at existing levels to the greatest extent possible, while also ensuring the financial stability of the Council.

Budget 2021 has been prepared on the basis that there will be continued Government support into 2021, with Covid-19 expected to continue to impact businesses and communities in County Clare and, correspondingly, the rates income to the Council.

Director of Finance, Noeleen Fitzgerald, pointed out that the particular focus of the budget is continued support for business. Commercial rates will not be increased and a number of support schemes are continuing or enhanced into 2021.

A Small and Medium Enterprise (SME) 10% Support Scheme has been introduced. This is a review of the 2016 Early Payment Incentive Scheme, updated to a new single scheme for all SME businesses in County Clare with a commercial rates liability up to €10,000. This proposed grant will provide for a 10 per cent credit against the subsequent year commercial rates liability where the customer discharges their rates invoice by direct debit in the year. This scheme will potentially provide a 10 per cent rates reduction to nine out of every 10 businesses in the county. Full details of the scheme and applicable criteria when launched in 2021 will be available on the Council’s website.

Budget 2021 also provides for continuation of the Long Term Vacant Property Incentive Scheme. By encouraging the re-occupation of vacant premises that were previously occupied and now vacant, the Council will support the improvement in the appearance and attraction of commercial locations and thereby will contribute indirectly to increased footfall for existing businesses but also act as a step in arrangement for new businesses opening in the county. 

In the area of rural regeneration and vacant properties, 2021 will see the use of Section 31 of the Local Government Reform Act 2014 to incentivise property owners to bring their vacant properties back into use. The legislation gives the power to the members of local authorities to vary the level of rates refunds that apply in individual local electoral areas within the overall administrative area of the local authority.

There will be no reduction to the General Municipal Allocation (GMA), which is being maintained at its current level in Budget 2021.

Particular focus will continue on housing and homeless services, supports for community groups and the provision of playgrounds for families in Clare, as well as on the need to deliver on a number of capital projects including road infrastructure improvements and the new County Library in Ennis.

Budget 2021 also provides for the commencement of implementation of the Ennis 2040 strategy.

Acknowledging that the social, economic and overall societal ramifications of Covid-19 are enormous, and that economies across the world are only coming to terms with new realities and a wholly uncertain future, Pat Dowling, Chief Executive, Clare County Council, said that the Council is determined to be resilient in the face of changing circumstances.

Mr Dowling said: “We will remain positive but vigilant for 2021 and beyond. Services will be maintained as much as possible and it is not my intention to add further pressure or to compound the already difficult situation in which people, communities and businesses find themselves. While my team and I must find savings, we will do so in ways internal to the operations of the Council in as much as possible.”

He continued: “I fully understand the importance of local discretionary funding via the GMA, I fully understand pressures on businesses and commerce in the context of rates and the value of business supports, I also fully understand the need to awaken dormant commercial activity. Furthermore, I have made provision for a number of additional strategic initiatives crucial to the future wellbeing of our county and communities, notably Forward Planning for our county towns and capital, and an intensified approach to dealing with unrest and anti-social activities and unauthorised occupation.”

Mr Dowling noted the interventions of central Government and the advocacy of the Department of Housing, Local Government and Heritage in leveraging assistance via the Department of Public Expenditure and Reform/Department of Finance to help the Council overcome the financial difficulties of 2020. He pointed out that the Government committed a total of €900m to the local government sector to offset total losses combining commercial rates waiver costs and costs covering losses of income from other service areas.

Mr Dowling concluded: “While many elements of the Council's finances for 2021 will be contingent upon further Government support, particularly if the Covid-19 trajectory continues unfavourably, the budget has been constructed on the basis of reasonable expectations that such supports will be available in 2021.”

Full details of Budget 2021 will be available here at www.clarecoco.ie

Page last reviewed: 02/12/20

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