Fórsa has said the Government must seriously consider increased local government funding as county councils around the country face budget deficits worth millions as a result of the Covid-19 pandemic.

Local authorities are set to lose a substantial portion of their annual rates income because many businesses will struggle to get back on their feet after closures, while others won’t be able to reopen at all.

There is also significant revenue loss in some areas due to reduced income from parking charges and fines, while many municipal district councils have already decided to axe parking charges for three months in an effort to attract shoppers back into towns and cities.

Head of both Fórsa’s local government and municipal divisions, Peter Nolan said the Government needs to invest heavily in this area if services are to be maintained: “Ireland already has the most under-funded local government sector in Europe and the current crisis has only served to exacerbate this.

"In order to continue providing these vital services municipal districts need urgent state aid, in step with the aid provided to the commercial sector, so that our towns and cities can recover from this crisis,” he said.

The chief executive of Cork County Council Tim Lucey described its financial situation as “stark”. He recently warned councillors not to underestimate the challenges they face, as the crisis could impact the council's income for the “next four to five years".

Peter commented: “Decisions have already been made in some areas to halt council housing maintenance programmes, except for emergency repairs. While local authorities may also be forced to reduce funding for roads in some regions.

“As it stands, the financial situation is only set to get worse so we need serious intervention sooner rather than later. Without national funding, councils will encounter a serious deficit that will affect 2021 budgets and quite possibly beyond next year.

"Unlike many other public services there is an explicit legal requirement on local authorities to balance their books. We mustn’t underestimate the value of strong local authorities and the services they provide,” he said.

Read Fórsa’s advice on returning to your workplace HERE. 

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