Varadkar says cost-of-living budget measures will help people before Christmas

By Gráinne Ní Aodha, PA

Taoiseach Leo Varadkar has said next 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, with taxation measures amounting to €1.1 billion.

There will be a package of one-off measures, but Minister for Finance Michael McGrath has warned that as inflation still remains high, there will be “a limited amount of space available” for temporary supports, 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 that the higher rate of tax is introduced.

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 €2 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 night, Mr Varadkar said that the budget would have “a good” income tax and USC package.

The Fine Gael leader 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 corporate tax receipts are down 12 per cent 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 six per cent this year and 3.2 per cent in 2024.

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

The three party leaders met on Wednesday night as part of agreeing the final budget details, with another due at the weekend.