Budget 2023: Rent tax credit will go 'straight into landlords' pockets', says Cork TD

A Cork TD has said a tax credit for renters, worth €1,000 over the course of two years, announced by Finance Minister Paschal Donohoe in Budget 2023, will go straight into the pockets of landlords unless a rent freeze is introduced.

Under the measure announced by Mr Donohoe, tenants are in line for tax relief of €500 this year with another €500 to come in 2023.

Cork North Central Socialist Party TD Mick Barry said that without a rent freeze, any money saved in a tax credit for renters would go directly to landlords.

Mr Barry, who is a member of the Oireachtas Finance Committee, added that the €12 increase in social welfare payments fails to match the rate of inflation for the vast majority of social welfare recipients and in effect represents a cut in income for some of the lowest income households in the State.

The Cork North Central TD claimed that despite the talk of budget giveaways, when people sit down and do the math they will see that the Budget falls far short of protecting their standard of living in the face of the cost of living crisis.

He predicted that the budget will not be sufficient to assuage public dissatisfaction, and that November’s planned cost of living protests will attract big support

He also predicted that a demand for a second emergency budget will gain traction by the early New Year.

“Despite all the talk of a giveaway budget the vast majority of people will be worse off in the New Year than they are today,” Mr Barry said.

“Profiteering is rampant but the Government is not taking strong action against the profiteers, and without a rent freeze the renters tax credit will end up in the pockets of landlords.

“The social welfare increase falls far short of the €20 many campaigners called for and will be eaten up by inflation before half the week is through,” Mr Barry said.

“Half measures will not keep household budgets out of the red and when the time to protest comes will not keep people off the streets either.”