Watch: What to expect from Budget 2024

THE budget will offer support for people struggling with high electricity bills this winter, the Taoiseach has said.

Leo Varadkar said details of the energy measures had yet to be finalised but he said the Government had earmarked money to help people with their bills.

Speaking to reporters as he attended the European Political Community meeting in Granada in Spain, Mr Varadkar was asked whether people could expect winter energy credits similar to those paid out in last year’s budget.

“So the details of that hasn’t been worked out,” he replied.

“What I can say is that people will get help with their electricity bills over the course of the winter. The details of that has to be worked out.

“Electricity prices have fallen, but they’re still substantially higher than they would have been two winters ago.

“We understand that as a government we have the money to help people with those bills and we will.” On Wednesday Mr Varadkar told parliamentary colleagues that Tuesday’s budget will have cost-of-living measures that people will feel the benefit of before Christmas.

The Budget 2024 package is set at 6.4 billion euro, with taxation measures amounting to 1.1 billion euro.

There will be a package of one-off measures, but Minister for Finance Michael McGrath has said that as inflation still remains high, there will be “a limited amount of space available” for temporary support, which will be targeted.

Several measures that could be included in Budget 2024 have been floated in recent months, including a reduction in the universal social charge (USC) and an increase in the threshold at which the higher rate of tax is introduced.

OPPOSTION PARTIES

Opposition parties have been outlining their alternative budgets this week.

Sinn Féin has promised to boost social housing numbers and impose a three-year rent freeze; the Social Democrats committed to a two-euro minimum wage increase and a super wealth tax, and the Rural Independents want to abolish the USC entirely.

Speaking to his Fine Gael parliamentary party on Wednesday, Mr Varadkar said that the budget would have “a good” income tax and USC package.

He also said that budgetary measures will help farmers and small businesses who face high recurring costs, and that children and wellbeing would also be a focus.

Minister for Public Expenditure Paschal Donohoe told the parliamentary party that a drop in corporation tax receipts would not change budget planning, due to a reserve fund and a surplus.

Exchequer returns this week indicated that corporation tax receipts are down 12% on September last year.

The ESRI has also this week revised its outlook for how the Irish economy would perform this year and next year, predicting an inflation rate of 6% this year and 3.2% in 2024.

It also warned against “domestic pressures” introduced as part of the Budget which could add to high prices.

The three coalition party leaders met on Wednesday to discuss final budget details, with another meeting due at the weekend.