Harry McGee, Political Correspondent, Lissadell, Co Sligo

The Government has committed itself to an effective freeze in property tax when the next revaluation occurs in 2017.

As the Cabinet prepared to meet in Lissadel House, Co Sligo on Wednesday Minister for Finance Michael Noonan said there would be no sudden shocks for property owners in terms of increased property taxes.

When homes and properties were given valuations in 2013, the Government gave a commitment that the tax would remain unchanged until 2017.

Mr Noonan said that since the valuations were done, property prices in Dublin have increased by 40 per cent and around 20 per cent in the rest of the country.

“I am not going to be in a situation if we are back in Government get into a situation where there is a huge jump in the take on property tax.

“We are examining ways of keeping the tax take about the same as it is now.

“What I am committing to the people in advance is there will be no sudden shocks in advance of the property tax.”

Mr Noonan said the report by Don Thornhill of his examination of this issue will be made public closer to the Budget. At the same time he undertook that there would be no sharp increases in the tax.

He was speaking in advance of the last Cabinet meeting of the year in Lissadel House.

Taoiseach Enda Kenny and most Ministers arrived by bus at the historic Co Sligo house after midday and were greeted by the owners of the house, Edward Walsh and Constance Cassidy, as well as five of their seven children.

Tánaiste Joan Burton, who had an engagement in Sligo, arrived a short time later for the meeting, saying she was very glad to be a female Minister at the former home of Constance Markievicz, the first female Member of the Dáil and the first female cabinet minister.

The main items to be discussed at Cabinet are:

- a memo on the latest budgetary situation brought by Mr Noonan;

- a memorandum on a new childcare policy brought by Minister for Children James Reilly; and

- a new Bill allowing adopted children the right to trace their parentage, also brought by Dr Reilly.

Speaking in advance of the meeting, which is the last before the summer recess, Mr Noonan said the economic recovery was becoming deeper and was extending to more of the population.

Mr Noonan said that the income tax situation was good and that the April forecasts of €1 billion of additional taxation was now being revised upwards to €1.5 billion .

He said that “because of fiscal rules it does not give us any additional budget space” and he was still working on the basis that the adjustments in the budget would be between €1.2 billion and €1.5 billion.

However, he said the Government deficit for 2015 was now being projected at 2.3 per cent, lower than earlier estimates.

He accepted there would be a health over-run for this year but said it would not be anywhere near €1 billion, as has been predicted in some quarters.

Minister for Communications Alex White told reporters that Labour's budgetary priorities were to bring in a budget that was "fair and ensure we spread the opportunities across the society in a fair way."