Cabinet agrees range of pre-election sweeteners

Lures include property tax frozen until 2019 regardless of sector price changes

The Cabinet yesterday agreed a number of pre-general election sweeteners, including a pledge not to increase local property tax rates before 2019, regardless of any change in property prices.

Ministers agreed to moves that will see the restoration of public service pay and welfare increases coming into effect in late December or January.

Minister for Social Protection Joan Burton secured a supplementary estimate of €299 million so the Christmas bonus can be paid, along with welfare payments that fall due in the final days of December.

Minister for Public Expenditure and Reform Brendan Howlin got agreement for legislation that will reverse, from January, public service pay cuts imposed during the financial crisis.

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Under current legislation the initial valuation of a property for tax purposes on May 1st, 2013, is valid until the end of October next year.

The decision to extend the period for current valuations for a further three years is based on a recommendation in a report compiled by Dr Don Thornhill.

He also proposes a Government-set Local Property Tax (LPT) rate for each local authority, but they would able to adjust it upwards by a factor of up to 15 per cent.

The postponement means homeowners will not be faced with increases in their LPT in 2017 as a result of increased property values.

Disabled homeowners and those who bought properties built with pyrite materials will be exempted from the LPT.

Minister for the Environment Alan Kelly was given the go-ahead for a Planning and Development Bill which offers relaxations in planning laws to encourage apartment construction.

Stephen Collins

Stephen Collins

Stephen Collins is a columnist with and former political editor of The Irish Times