Cutting Property Tax has ‘just blown a €10m hole in the council budget’
Councillors in Dún Laoghaire-Rathdown have voted in favour of a 15pc cut to the Local Property Tax (LPT), despite warnings it would impact the delivery of essential services.
Ahead of budget planning for 2026, Deputy Chief Executive of the Council, Helena Cunningham, said the council is facing a difficult budget for the next year, with higher costs and salaries, a growing population and the rising costs of amenities.
Councillors can vote annually on whether to keep the LPT at the base rate, to cut it by up to 15pc, or increase it by up to 15pc.
The council’s only source of revenue are the LPT, rents rates and parking charges, and the 15pc reduction could see €10.4m reduced from the council’s total budget.
There are concerns the reduction could mean higher social housing rents and rates on local businesses.
Fianna Fáil Councillor Michael Clark voted for a full 15pc reduction as “homeowners already pay more than their fair share”.
“A modest house in this county can have a higher nominal value than a huge house in a rural area and is taxed accordingly.
“Most of these are family homes, not assets to be flipped, they cannot be easily monetised.
“These are families who might be property rich and cash poor. The tax is a burden on our citizens, we cannot penalise people in the middle of a cost-of-living crisis.”
The proposal also found the support of Fine Gael, People Before Profit (PBP), and some independent councillors.
The Green Party, who supported maintaining the base rate, called the 15pc reduction “tokenistic”.
A spokesperson from the party called out the councillors who agreed on the lowest possible amount of LPT, despite warnings from the Council Executive that it will impact essential public services.
Robert Jones, Green Party councillor for Dundrum, said: “Fine Gael, Fianna Fáil, PBP and Independents have just blown a €10m hole in our council budget for 2026.
“We need to be honest with people. A 15pc cut in the Local Property Tax saves the average homeowner one to two euro a week.
“But the cost is far greater – footpaths go unmaintained, playgrounds don’t get repaired, and community services suffer.
“Council management have been crystal clear that costs are rising.
“This 15pc benefits those who don’t need it, the average homeowner saves a euro or two a week, while renters get nothing.
“Institutions and landlords pocket tens of thousands – this is not a policy, it’s a handout. By cutting the LPT, we’re simply shifting the burden.
“Instead of a modest broad-based tax on wealth, Fine Gael and Fianna Fáil will now be looking at increasing social housing rents, civic centre fees and rates on local businesses.”
PBP councillor Dave O’Keeffe, who also supported the 15pc cut, said he was “reluctant to get behind the motion based on the people who have put it forward”.
“The parties in government who can’t provide affordable housing, rent or social housing have created the situation we are in today,” he said.
“They've now put us in the position of choosing between increasing rent for social housing tenants or increasing property tax.
“The numbers might seem small, but they are only small if you can afford it. I’ve met families who had to make the decision to turn the heating on or not in winter.
“Five or €10 can mean a lot to them, so I can’t get behind raising the tax.”