Housing minister proposes €300 increase to rent tax credit

As Budget 2027 talks intensify, James Browne wants to see more renters draw down the tax credit

Housing minister James Browne speaking to the media during Fianna Fail's annual think-in at Tullamore Court Hotel in Tullamore. Picture: PA

A €300 increase to the rent tax credit has been put on the table by minister for housing James Browne, as talks on Budget 2027 intensify.

Mr Browne is seeking for the tax credit to increase to €1,300 per year.

A spokesperson for he minister said: “We are certainly pushing for an increase to the renters’ tax credit in this budget, as there wasn’t an increase last year.

“This year saw significant changes to rental law in Ireland, and a strengthening of renters’ rights, but rents remain by and large too high and the tax credit is critical for people and it needs to be increased to alleviate the pressure.”

The spokesperson said Mr Browne wants to see more renters draw down the tax credit as “many people who are eligible may not have applied via Revenue”.

The minister is also still pushing for a rise to Help to Buy relief for first-time buyers, despite Tánaiste Simon Harris previously rejecting the proposal.

The proposal would see the relief available increase to €50,000 from €30,000.

One Government source said: “As far as we are concerned, we are still pushing for it. Negotiations aren’t over on the matter.”

They cited how Fine Gael’s election manifesto called for a €10,000 increase in Help to Buy rates.

On Friday, Taoiseach Micheál Martin also appeared to pour cold water over Mr Browne’s proposal, saying he wanted to see greater capital funding allocated to the Department of Housing.

However, he did push for an expansion of the existing Rent-a-Room scheme.

It comes as Mr Harris is expected to say the Government cannot solely throw money at problems and “expect results”.

In a speech to the ESRI later today, the finance minister will say Ireland’s continued economic prosperity “is far from guaranteed” unless the right choices are taken by the Government.

Mr Harris will say Ireland is facing a watershed moment as the country’s population will begin aging rapidly by the middle of the next decade.

“By 2050, just 24 years away, Ireland will look a lot like Italy or Japan does today. In such a society, growth will be lower, costs will be higher, and the burden on taxpayers, our children, will be immense,” the Tánaiste will say.

“There is no way of avoiding that fate and that is why it is so important that we continue to run surpluses and invest in our sovereign wealth fund.”

Mr Harris will say shifting trade patterns and geopolitical upheaval will require Ireland’s economy to be more diversified.

“That is not a threat, it is an opportunity,” he will say.

“Everyone knows about the level of concentration in corporation tax receipts, but that is just a reflection of the concentration in our industrial base. We are very reliant on a few key sectors, a few key firms and a few key products.”

The Tánaiste will also say that Government must begin to think in decades rather than years, alongside improving competitiveness and balancing current needs with future security.

He will say fundamental reforms are required to deliver on the €275bn National Development Plan.

Meanwhile, social protection minister Dara Calleary is pressing for an expansion of the fuel allowance, with an increase in payment rates and eligibility thresholds said to be on the table.

Changes to the fuel allowance will for part of a cross departmental package on fuel.

Elsewhere, culture minister Patrick O’Donovan is pushing for a €100 voucher for all 16-year-olds for cultural and arts events. The proposal would cost €7.5m to introduce.

One source said, if provided for 16-year-olds in this year’s budget, Mr O’Donovan hopes it could be rolled out to 17-year-olds next year.

• Tadgh McNally, Political Reporter