No cut to property tax in councils with enough funding

Homeowners in 11 counties - including Kerry, Clare and Galway and parts of Dublin - will not see any cut in property tax, as a result of plans drawn up by the Government.

Despite the councils raising enough funding to permit a reduction, planned cuts in local Government funding will mean they'll be unable to do so.

In a document prepared for the Economic Management Council, seen by the Irish Independent, 11 local authorities who have raised enough funding through the cash will be prevented from adjusting the charge by up to 15% downwards, as their budgets are cut elsewhere.

From next year, some of the funds raised through the property tax will be diverted to poorer councils - approximately 20% of the total collected.

The issue continues to split the coalition with Tánaiste Eamon Gilmore refusing to sign off on the plan and leaving it to his successor to negotiate.

The Communications Minister, however, insisted there is no squabble in Government over the tax.

Pat Rabbitte told the Dáil that there is no change in the position, that nothing has come to Cabinet and that the meeting of the Economic Management Council yesterday was not cancelled because of a row in the coalition, despite rumours.

The affected councils are Dublin city and south county Dublin, Cork city and county, Kerry, Clare, Kildare, Meath, Louth, Wicklow and Galway.

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