Cutting stamp duty risks wreaking “devastation” on a new generation of young people, Simon Harris has warned. 

Ahead of Budget 2027, a number of Fianna Fáil TDs have urged the Government to consider cutting or abolishing stamp duty for first time buyers. 

Cork South Central TD Séamus McGrath described doing so as “sensible” and something that would “make our overall Government approach more consistent in assisting first time buyers”. 

However, the proposal has been rejected by Fine Gael, who argued that it would in fact end up increasing house prices. 

“I believe sometimes the job of Finance Minister is to say no,” An Tánaiste told Newstalk Breakfast.  

“My job as Finance Minister, my job as a coalition leader is to implement the Programme for Government and the Programme for Government doesn't contain this provision. 

“Any time there's an idea that isn't in the Programme for Government, it requires both parties and the independents in Government to agree to it.”

Public Expenditure Minister Jack Chambers and Finance Minister Simon Harris. Picture by: Alamy.com.

Despite this, Minister Harris praised the TDs for putting forward the proposal, noting that “we're in a housing emergency, all ideas welcome”. 

“I would just say very respectfully, the last time we saw tinkering with stamp duty in this country, it brought devastation to many,” he said. 

“I'm in politics long enough and I'm of an age long enough and I represent a generation long enough who know what happened when we started playing with stamp duty.”

A man walking past 'For Sale' signs in Dublin. Picture by: Leah Farrell / RollingNews.ie. 

Minister Harris noted that the proposal was not in either the Fine Gael or the Fianna Fáil manifesto and that he hoped to cut income tax, rather than stamp duty in the budget. 

He also questioned whether a cut in stamp duty would actually help first time buyers. 

“The economic advice available to me from the Department of Finance is that this wouldn't help first time buyers,” he explained. 

“That it would effectively be a further tax break for a developer and it would actually have an effect of pushing up house prices, which, in fairness, nobody's looking to do.”

Budget 2027 is due to be held on 6th October.

Main image: ine Gael party leader Simon Harris. Picture by: Leah Farrell/RollingNews.ie.