Living City Initiative expanded to Dundalk

placeholder image — Dundalk's Market Square

Scheme is designed to revitalise older urban areas

LOUTH LIVE'S BUDGET 2026 COVERAGE IS SPONSORED BY CONNECT CREDIT UNION

Louth TD Deputy Erin McGreehan has welcomed the announcement in Budget 2026 that Dundalk and Drogheda will be included in the expanded Living City Initiative, a government scheme designed to revitalise older urban areas through targeted regeneration support.

The initiative, which currently applies to designated areas in Cork, Dublin, Galway, Kilkenny, Limerick, and Waterford, is being extended to five additional regional centres under the National Planning Framework - including Dundalk and Drogheda.

“This is a major opportunity for Dundalk and Drogheda,”Deputy McGreehan said.

This should facilitate tax cuts elsewhere though. In particular, a VAT cut for the hospitality industry is expected, which should provide a boost to cafés, restaurants and fast-food outlets.

Key changes to the scheme include:

Extension of the initiative to 2030
Expansion of eligibility for residential properties from those built before 1915 to 1975
Support for converting “over the shop” premises into residential use
Increased relief for enterprises from €200,000 to €300,000, with more flexibility on claiming periods

Deputy McGreehan continued: “Louth County Council will play a vital role in preparing Special Regeneration Areas for Dundalk and Drogheda. I’ll be working closely with them to ensure this opportunity delivers real benefits for our communities.”

The initiative is expected to support both economic development and urban renewal, helping to address vacancy, improve housing supply, and support small businesses.