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Covid-19 creates €9.1m shortfall for Longford County Council to make up in 2021 budget

Nov 23, 2020 13:11 By Shannonside News
Covid-19 creates €9.1m shortfall for Longford County Council to make up in 2021 budget Covid-19 creates €9.1m shortfall for Longford County Council to make up in 2021 budget
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The financial impact of Covid-19 is expected to create a shortfall of over €9 million for Longford County Council's 2021 budget. The local

The financial impact of Covid-19 is expected to create a shortfall of over €9 million for Longford County Council's 2021 budget.

The local authority expects to spend €57.2 million on goods and services countywide - €9.1 million more than last year.

County councillors will meet this afternoon to discuss the figures and priorities for the year ahead.

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An additional €8.5m will be spent around the county under Road Transport and Safety in 2021 bringing the total estimated spend under the heading to just under €20m.

The annual commercial rate of valuation remains the same as last year at €0.2401 and the local property tax will also remain the same with councillors agreeing in September to increase it by 15 per cent again to match the income generated by it last year.

The budget shortfall of €9.1m includes the estimated income decline in rates of €5.5m and goods and services income of €2.9m together with an increase in spend of €0.7m - considered to be largely Covid-19 driven.

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In his report, Chief Executive Paddy Mahon says Longford County Council is currently in the process of having the lost Commercial Rates Income reimbursed to it through the Department of Housing, Planning and Local Government.

It's unknown whether central government will reimburse local authorities for lost goods and services but the Chief Executive says they remain "cautiously confident" that the issue may be resolved nationally by the end of 2020.

In the meantime however, budget figures estimates that Government grants to Longford County Council will increase for 2021 by over €10m.

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The meeting gets underway at 3pm.

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