Minister for Finance Paschal Donohoe has confirmed he will halve the concrete levy from 10% to 5% after 'many' Cabinet colleagues raised issues with it.

The change comes after Government TDs and building sector representatives raised concerns that it will add to the cost of construction amid a housing crisis.

The introduction of the levy will be delayed from April to September 1, and it is expected to raise €32million over 12 months, less than half of the €80million it was originally expected to deliver.

A levy on 18 concrete products and on pouring concrete was announced as part of Budget 2023, to fund a redress scheme for people living in homes that were built with defective building materials.

The levy has been limited to concrete blocks and pouring concrete only, and will no longer apply to pre-cast concrete materials.

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"I accept issues that have been raised regarding the potential for that levy to undermine very valuable exports, in particular, upon which a number of Irish companies and a number of Irish jobs could be dependent on," Mr Donohoe said.

"I listened to [Housing Minister Darragh O'Brien] but I also listened to other colleagues in Cabinet, many of whom did raise issues with me in relation to it, and all of them were listened to."

Mr Donohoe said there would be no sunset clause for the levy, as he believed it would be in place for longer than planned, to fund the redress scheme.

"We can keep it in place for as long as is deemed necessary to recoup back a good share of the additional money that is needed to help homes be rebuilt due to mica," he added.

The Finance Bill, which is the legislation underpinning the concrete levy and other budgetary measures, will be published tomorrow.