Demining operation. Expected Friday, October 7 at the Convention of intermunicipalities, which was held in Bordeaux, the Prime Minister did not come empty-handed. To local authorities who are constantly alarmed by the increase in the weight of the energy bill on their budgets, Elisabeth Borne has promised new financial support.
The head of government announced that the increase in the overall operating grant, paid by the State to communities and frozen for thirteen years, will be supplemented by 320 million euros in 2023, and not 210 million euros , as originally planned. This will allow 95%, and no longer 70%, of communities to receive stable or increasing staffing next year, according to Ms.me Borne.
But the biggest boost is linked to the business value added contribution (CVAE). If the government has planned to abolish this tax in two years, which brings in some 8 billion euros to local authorities, this loss will be compensated by a fraction of VAT, confirmed Mr.me Thick headed. Above all, at the request of elected officials, the way in which this compensation will be calculated will be more favorable to them than expected. “I wanted the compensation to take into account the amount of CVAE that the communities should have received in 2023”, announced the tenant of Matignon. As a result, this will provide “between 300 and 500 million additional euros, which can support your investments through the green fund”. Reference to the 1.5 billion euro fund announced by Mme Terminal, at the end of August, intended for local authorities to help them fight against climate change.
Finally, the Prime Minister promised to launch ” very soon “ the decentralization of housing, as Emmanuel Macron had promised during his presidential campaign.
Rejection of the “Pact of Trust”
Will these announcements be enough to calm things down with local communities? Very worried about soaring energy prices, they are constantly calling for an emergency tariff shield. The one that limits price increases to 15% will be extended in 2023. But it only concerns the smallest municipalities. The National Assembly also decided this week to extend in 2023 the safety net voted in August 2022 for the communities most in difficulty.
However, local elected officials have rather badly received the draft budget for next year. The oppositions relayed their dissatisfaction by rejecting in the Finance Committee of the National Assembly, Tuesday, October 4, the “confidence pact” concocted by the State to constrain the increase in local authority spending: 3.8% in 2023; 2.5% in 2024; 1.6% in 2025 and 1.3% in 2026 and 2027.
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