Budget 2025: what effort is required of your territory?

“Toxic cocktail effect”

“In addition to the direct drain on the revenues of the 450 largest communities (three billion euros), there is in fact the reduction in the FCTVA (value added tax compensation fund), the freezing of the dynamics of VAT, the increase in the contribution rate to the CNRACL (National Retirement Fund for Local Authority Agents) and the reduction in the DCRTP (compensation grant for the professional tax reform), creating a toxic cocktail effect for communities,” underlines Intercommunalités de France.

The association of elected officials, which presents its calculation for intermunicipalities and municipalities, including in Brittany, estimates that the effort requested by the government represents 8.5 billion euros for all communities. “On average, the cost for each intercommunity is one million euros, not counting the reduction in investment aid (green funds in particular),” she indicates.

The lines should move in the Senate

However, the lines should move during the examination of the PLF 2025 in the Senate. Michel Barnier said he was ready, Thursday evening, for “significant adjustments” on the local authority side. The “precautionary fund” of three billion euros that the executive intends to take from the tax revenues of the 450 communities and EPCIs whose operating budget exceeds 40 million euros is going particularly badly. “It is unacceptable, it is a direct tax from the State on communities and EPCIs, it is taking from them the money that the French have entrusted to them, and this will push elected officials to make choices to the detriment of the services rendered to their fellow citizens,” said Sébastien Martin, president of the agglomeration community of Grand Chalon (71) and Intercommunalités de France, in mid-October.

“The most populous intermunicipalities, concerned as a priority, are not necessarily the richest even though they contribute more”

Through its simulations, Intercommunalités de France also intends to highlight a poorly distributed effort, emphasizing that “the most populous intercommunalities, concerned as a priority, are not necessarily the richest even though they contribute more”.

There is general discontent within local communities. On Thursday, the departments led by the right and the center announced their intention to suspend the payment of active solidarity income (RSA) and to stop taking care of new unaccompanied minors (UMA) if the government does not reconsider the budgetary cuts planned for 2025. And this Friday morning, Michel Barnier announced that the budgetary effort which will be requested from the departments as part of the 2025 budget will be reduced “very significantly” to take into account their situation “ very specific.