Sligo council’s draft budget will see almost €230m spent in 2026 and a ‘strong focus’ on social housing

By Philip Rooney, The Sligo Champion

Sligo County Council’s draft budget for 2026 was passed by Councillors at Monday’s annual budget meeting with details announced of a number of significant projects that will be advanced over the coming year.

Chief Executive Martin Lydon reported that just shy of €230m is going to be spent in the county next year, “With a strong focus on delivery of social housing.”

Outlining some of the capital projects that Sligo County Council will be concentrating on over the coming year Mr Lydon said construction on the Sligo Streets Project will commence in Q1 2026. In relation to the City Campus Project, he noted the masterplan is underway and will be completed in Q3 2026. The Sligo Harbour Masterplan was also recently completed.

Another significant and long awaited development, the Eastern Garavogue Bridge will see the tender published in Q1 2026 with construction to commence in 2026. In relation to the Sligo Gaol and Governors House project, it was stated design will be underway in 2026.

The Enniscrone Cliff Bath and House and Promenade Project will see the tender published in Q1 2026 with construction to follow in Q3. Other significant developments that are set to be advanced include Facility centres for watersport activities at Enniscrone and Rosses Point. The tender was published last month and construction will commence in Q1 of 2026.

A tender for Ballymote Library will be published in Q4 2026 with construction to commence in Q1 2027.

These projects will require approximately €17 million in match funding, which will be financed through loans over a 40-year term. Over the next 18–24 months, members will be requested to authorise these loan applications.

Mr Lydon’s report also revealed, “The Council is procuring a report on Affordable Housing. Should a need be identified, delivery is proposed at the Cairnsfoot site (currently part of a competitive dialogue process), Finisklin Phase 2, and Strandhill. The Council remains confident of meeting its target of approximately 517 social homes by the end of 2026 and is well positioned to deliver further homes under the next Housing Delivery Action Plan. “In 2026, there will be a stronger focus on using Compulsory Purchase Order (CPO) powers to acquire derelict properties and return them to use for social housing. Negotiations with property owners are already underway, and this process will be accelerated to both reduce dereliction and deliver much-needed homes.”

In relation to long-awaited improvement works on the N17, Mr Lydon remarked, “Details of the National Development Plan (NDP), announced in July 2025, are eagerly awaited, with the N17 expected to be the largest infrastructure project for Sligo.”

In relation to the manner in which the local authority is funded, Mr Lydon noted, “Much of the funding available to the local government sector is provided through specific grants to meet national priorities. Government grant funding now accounts for 44% of all local government income, compared to 21% in 2013. Over the same period, inflation has risen by 21.5%, while own-resource funding has increased by 23%. In real terms, therefore, there has been no increase in funding to the sector, leading to an erosion of both fiscal and operational autonomy at local level.”

Mr Lydon also reported that as previously agreed there will no be increase in commercial rates this year commenting, “In my 2023 Budget Report, I proposed that commercial rates be increased by 10% over a four-year period up to and including 2026. Consequently, there is no rates increase included in this year’s budget. The €1.5 million per annum generated from previous increases is now being utilised to advance capital projects such as Phase 1 of Sligo Streets and to finance the loan that enabled the Council to replace 90% of public lighting with LED bulbs.”

While there may be no increase in rates in this budget it is envisaged that increases will return with Mr Lydon commenting, “I propose to begin a consultation process with Members to consider annual rate increases from 2027, in line with the Harmonised Index of Consumer Prices (HICP). This would ensure revenue keeps pace with inflation and allows existing service levels to be maintained, albeit without scope for service expansion.”

In relation to the controversial issue of Local Property Tax, Mr Lydon remarked, “The 2026 revaluation process for the Local Property Tax (LPT) has provided the Council with an additional €600,000 to its baseline and €96,000 as a result of the decision to increase LPT by 15% over the term of the Council. This 15% increase will yield an additional €4.1 million for investment in services over the Council’s lifetime.”

Mr Lydon revealed the additional funding will be allocated as follows: For 2026, it is proposed to invest additional LPT funding in the following services: Local Roads €305,000; Tourism €100,000; Dereliction €100,000; Housing Grants (Match Funding) €80,000; Burial Grounds €75,000; Library Book Fund €75,000; Disability Officer €51,900; Festival and Events Strategy €30,000 and Public Conveniences €15,000.

The Chief Executive also remarked that creating greater accessibility to the county’s beaches was a priority as he commented, “As a once-off measure, this Budget includes an allocation from development contributions to improve beach access for people with disabilities. The recruitment of a Disability/Inclusion Officer in 2026 will enhance engagement with the Disability Consultative Committee and support the implementation of our strategy to make Sligo one of the most inclusive counties in Ireland.”

Upon completing his presentation, Mr Lydon acknowledged the co-operation and help he has received from “Members, Government Departments, State Agencies, and our communities. For Sligo to progress, these partnerships must be maintained, as we can achieve far more together than alone.”

Cllr Edel McSharry noted the historic deficit of €9.3m saying, “I think we should be looking for some forgiveness.” The improvement in the finances of the local authority was highlighted by others with Cllr Tom MacSharry saying, “The people of Sligo are served by excellent, diligent staff. They are second to none. In 2014 things were very bad for this local authority, We have come a long way.”

Cllr Declan Bree also praised the work carried out by the Council staff and executive but expressed concern that the role of elected representatives may be diminished as 44% of all funding is allocated in specific grants.

"Indeed the Congress of Local and Regional Authorities of the Council of Europe (CLRAE) in its report last year pointed out that the 2014 Local Government (Reform) Act violated the principle of subsidiarity, as it has increased a shift in power from local to central government. “The report stated that local government is much weaker in Ireland than in most other European countries, and it noted that Ireland’s ranking is just above those of Hungary, the Russian Federation and Moldova. “In this context we as councillors have very little discretion in framing and adopting a budget.”

Cllr Gerard Mullaney added, “Between 2009 and 2014 our financial situation was dire. You have produced a set of figures that anyone can stand over and be happy with.”

Cllr Fergal Nealon gave his backing to the budget saying, “If anyone isn’t supporting the budget I would like to see your 113 page document.”

Although it received widespread support from elected representatives, there were three dissenting voices. Cllr Arthur Gibbons stated he could not vote in favour. “It’s propped up by the property tax, I can’t support it,” adding, “It is a good budget.”

Cllrs Thomas Healy and Gino O’Boyle also voted against accepting the draft budget. All other members present voted for the budget to be accepted.

Article Funded by the Local Democracy Reporting Scheme