€700m fund puts brakes on rate hikes — for now

FUNDING of €700 million for local authorities will mean householders can avoid increased rates, development charges, or stealth taxes on services next year, according to Environment Minister Martin Cullen.

Mr Cullen is expected to announce a figure of €700 million for the Local Government Fund tomorrow, an increase of 11% on 2003 when €626 was allotted.

Sources close to the minister say this increase which includes extra funds made available in the Estimates and in the Budget is larger than county and city managers had originally anticipated. Mr Cullen is confident it will largely alleviate their concerns about a shortfall of funds to pay for benchmarking and other pay awards.