Budget 2027: Cracks in Coalition over plans to abolish stamp duty

Taoiseach Micheál Martin, Tánaiste Simon Harris, Regional Independents leader Sean Canney, and public expenditure minister Jack Chambers are meeting in Government Buildings on Monday afternoon to nail down the final aspects of Budget 2027

The Fianna Fáil side put forward ideas on stamp duty and different ways it could be implemented. One source said this could involve a model under which first-time buyers would pay no stamp duty on a certain portion of a property's value, with the tax only applying to the balance above a specified threshold. File picture

Cracks are emerging in the Coalition in the final hours of budget negotiations over the inclusion of the abolition of stamp duty for first-time buyers.

While Fianna Fáil sources are adamant that the proposal is still under consideration to be included in Tuesday's budget announcement, Fine Gael sources have doubled down on their opposition to the proposal, originally put forward by Fianna Fáil TD Seamus McGrath and strongly backed by Taoiseach Micheál Martin.

The Taoiseach, Tánaiste Simon Harris, Regional Independents leader Sean Canney, and public expenditure minister Jack Chambers are meeting in Government Buildings on Monday afternoon to nail down the final aspects of Budget 2027.

The Tánaiste has repeatedly said there are no plans to cut stamp duty for first-time buyers.

However, the Irish Examiner understands that the Fianna Fáil side put forward ideas on the proposal and different ways it could be implemented.

One source said this could involve a model under which first-time buyers would pay no stamp duty on a certain portion of a property's value, with the tax only applying to the balance above a specified threshold.

Fianna Fáil sources stressed on Monday afternoon that Budget 2027 will include something to help first-time buyers, either through stamp duty changes or the expansion of the Help to Buy scheme beyond the current €30,000 tax rebate.

The Fine Gael side has insisted this will not be the case and that stamp duty is off the table. 

The party has also previously expressed concerns about the idea of changing the Help to Buy amid fears it would inflate house prices.

Speaking on his way into Government Buildings, Mr Harris dismissed the idea of stamp duty changes, saying his view had not changed.

“I have made my views clear in relation to [stamp duty]. I haven't changed my views in relation to that,” he said.

“But look, Government is 'ad idem' (a meeting of the minds) here in terms of wanting to take measures to help people, including helping young people trying to buy a home.

“The budget tomorrow will obviously have a priority in relation to housing, but also a priority in terms of trying to help people with their disposable income for people saving for important life events, including saving for a deposit. You'll see movement on that.” 

Mr Harris later insisted there is nothing in the programme for government about changes to stamp duty.

Asked if stamp duty was on the agenda for the leaders’ meeting, Mr Harris said there are “lots of things on the agenda”.

“My view in relation to stamp duty is clear, it's consistent, hasn't changed,” he added.

“This Government has worked in a really diligent and coherent fashion across a whole range of areas to try and make progress. Everybody wants to make it easier for a first-time buyer to buy their first home. 

"Everyone wants to make it easier for people with the costs.

“It's absolutely right that different politicians have put forward different ideas and different views. We sit down, we put in place what we believe to be the right and balanced approach.” 

Elsewhere, the tax package will be decided by the party leaders on Monday afternoon, with generous tax credits set to ensure lower earners are the big winners in this year’s budget, it is understood.

The Irish Examiner also understands that higher education minister James Lawless’ proposed €250 fee cut is still under consideration.

• Louise Burne, Political Correspondent