Paschal Donohoe rules out mini-budget to tackle cost-of-living crisis

Michael Bolton

Minister for Public Expenditure Paschal Donohoe has ruled out the Government implementing a mini-budget to combat the cost-of-living crisis.

Mr Donohoe was speaking as the opposition made calls to implement a mini-budget to help those struggling with the cost-of-living crisis.

Many of the supports that were previously brought in by the Government are set to expire at the end of February.

However, the Taoiseach Leo Varadkar announced in the Dáil that support measures will be introduced next Tuesday, with targeted and universal interventions to help people struggling with rising bills.

Among the measures to expire at the end of February are an energy credit scheme for households, a reduced nine per cent VAT rate on hospitality, electricity and gas, and the Temporary Business Energy Support Scheme (TBES).

Excise is also due to go up on petrol and diesel.

"We will not be able to maintain that level of support across an entire year that will ultimately become unaffordable", said Mr Donohoe.

"While we are grappling with risks beyond our control, such as the price of the cost of energy, we don't want to create risks of our own here in Ireland.

We end up putting measures in place that are ultimately unaffordable."

Inflation 

Mr Donohoe admitted that while there are signs that inflation is decreasing in 2023, he expects this year to be another difficult year for those financially vulnerable.

"While inflation is coming down in 2023, it is still at a level that is having a real impact on living standards, and patricianly the living standards of our most vulnerable.

The Government will have to weigh up the merits of universal measures, and targeted measures."