Homeowners in 11 counties - including Kerry, Clare and Galway and parts of Dublin - will not see any cut in property tax as a result of plans drawn up by the government.

Despite the Councils raising enough funding to allow for a reduction, cuts in local government funding will mean they will be unable to do so.

From next year Councils across the country will keep 80% of the funding they raise through property tax.

The remaining money will be distributed to poorer Councils who do not raise enough cash from the tax.

But in a document prepared for the Economic Management Council, and seen by the Irish Independent, means a fresh round of cuts will prevent 11 local authorities adjusting the charge by up to 15% downwards because their surplus will be eroded.

These are two of the four councils in the capital as well as in Cork city and county, Kerry, Clare, Kildare, Meath, Louth, Wicklow and Galway.

The issue continues to split the coalition - with Tánaiste Eamon Gilmore refusing to sign off on the plan and leaving it to his successor to negotiate.

The issue is infuriating Labour TDs who are demanding that Dubliners in particular, who already pay higher property tax, are not ripped off.