Ibec welcomes Government decision to suspend development levies
Ibec, the group that represents Irish business, welcomes the Government’s decision to suspend development levies for new homes. This delivers on a key recommendation set out in Ibec’s ‘Better Housing, Better Business’ report which outlines ten key measures to improve the delivery of affordable and viable homes.
Fergal O’Brien, Ibec Executive Director of Lobbying and Influence said: “Development levies are a material cost in the delivery of new homes. Section 48 and 49 special and supplementary levies often add tens of thousands directly to the cost of building new homes and are fully passed through to the homebuyer. Ibec has long lobbied for comprehensive reform of a system in which new homebuyers have ended up subsidising the delivery of utilities, amenities and infrastructure which benefits users right across the local community.”
“Today’s decision will support viability of new homes and substantially reduce development costs. Whilst the announcement is to subvent levies through the Exchequer temporarily, ultimately reform of local government funding should see utilities, amenities and infrastructure funded by the Local Property Tax (LPT) where it benefits users across the local community rather than just the new home purchaser. The reform is a good example of the type of tangible policy change which will support new home affordability and availability and Government is to be commended for its openness in exploring new measures to address our housing challenges.”