Thousands of homeowners are facing increased tax bills after Cabinet agreed to charge Local Property Tax for houses built after 2013.

Under the current system Local Property Tax (LPT) rates are currently calculated using property valuations from 2013.

A new review will now take place in November to revalue all homes and include properties built since the last valuation.

While most homes will see no change in their LPT rates, thousands will face an increase.

The measure was approved as part of the Government’s new €3.5bn Economic Recovery Plan, which pledges to see employment pass 2019 levels by 2024.

Speaking this afternoon, the Tánaiste and Minister for Business Leo Varadkar said the plan will lead to the creation of hundreds of thousands of jobs.

“I believe that with this plan, our economy is going take off like a rocket in the months ahead,” he said.

“It is about restoring our public finances to good health through employment, not austerity; by going for growth, not retrenchment and aiming for a rapid recovery.”

The plan will also see the Pandemic Unemployment Payment phased out between September and February.

It will be cut by €50 in September, and again in November, before being scrapped on February 8th.

Meanwhile, the Wage Subsidy Scheme will be shut down at the end of the year.

The Taoiseach Micheál Martin said the plan will provide certainty to businesses and workers over the coming months.

“This pandemic has presented a dramatic and unprecedented social and economic shock for Ireland and the wider world.

“To rebuild after this shock – not just to return to where we were early last year, but to move forward – we need to work urgently and with a clear vision.”

Under the plan, the 9% VAT rate for the tourism sector will be extended until September 2022.

Other business supports like the CRSS payments will continue into the autumn.