Budget 2027: Fine Gael strongly against housing support measure proposed by Taoiseach

Micheál Martin has made it clear to his party that he wants to see a removal of stamp duty for first-time buyers, even though it has been ruled out by Simon Harris

Micheál Martin wants to see a removal of stamp duty for first-time buyers, even though it has been ruled out by Simon Harris. Pocture: Liam McBurney/PA Wire

The Government parties remain split on budget proposals to cut stamp duty, with negotiations on housing measures now expected to go down to the wire.

Taoiseach Micheál Martin is also strongly pushing to change the income threshold for social housing and has privately highlighted that the current criteria block almost all workers from applying as the income limits are so low.

However, a note of caution has been signalled from some in Government on this measure as it could significantly increase the number of people on the housing list.

It is understood that Mr Martin wants to help low-income workers to get a home, and is working with housing minister James Browne to relax the social housing qualification criteria.

Mr Martin has told his party that lower-paid workers should benefit from next week's budget, citing changes to tax credits as part of this.

During a private meeting of the Fianna Fáil parliamentary party, it was made clear that the maximum income thresholds, which range from €30,000 to €40,000 for a single person, depending on the local authority area, will be extended.

One Fianna Fáil member noted that the Taoiseach had given a "clear indication" that the thresholds will now be increased, and expressed "positive vibes" on measures being worked on to support working families.

"Currently if you have any kind of income, you can't access social housing, that needs to be addressed," a source said.

Meanwhile, the Fianna Fáil leader has made it clear to his party that he wants to see a removal of stamp duty for first-time buyers, even though it has been ruled out by Tánaiste and finance minister Simon Harris.

Cork TD Seamus McGrath had proposed that the tax on second-hand properties for first-time buyers be removed, which the Fianna Fáil leader has backed.

Currently, stamp duty is charged at a rate of 1% of the property’s value up to €1m, before rising to 2% between €1m and €1.5m, while all properties over €1.5m are charged 6%.

It means that first-time buyers could save between €4,000 and €5,000 on a typical family home if the tax is abolished.

However, Fine Gael is strongly against the move, with Mr Harris dismissing it as it is not within the programme for government.

On the revenue-raising side, the Government plans to increase tax on cigarettes.

Other party proposals 

Meanwhile, the Social Democrats have proposed major increases in spending, including a €400 targeted energy credit, a €300 cut to childcare fees, and a €15 increase to core welfare rates.

It also proposes to build four modular home factories; abolish the Carers Allowance means test and introduce both a second tier of child benefit and a €40 cost of disability payment.

The party has also proposed several tax changes, including plans to phase out the main income tax credits for those who earn over €100,000.

Labour is also proposing €400 targeted energy credits along with windfall taxes on energy companies and data centres.

Ivana Bacik's alternative budget contains a €500m scheme to roll out free solar plug-in, which would cut household bills.

The party wants to see a targeted second tier of Child Benefit introduced along with immediate increases in child and family supports. It would also extend free GP care to children up to the age of 12.