Budget 2025 is set to be announced in the coming minutes.
TDs have been filing into the Dáil chamber, ahead of Jack Chambers’ first budget as Finance Minister.
It’s the biggest budget in the history of the State and has a Late Late Show feel to it with something for everyone in the audience.
Jack Chambers will get to splash the cash like few before in his first budget and along with Paschal Donohoe they’ll deliver a pre-election giveaway.
There’s 12 euro a week increases for those on social welfare,
A 1.5 billion euro package of one off payments to those on social benefits,
A baby bonus of 420 euro for parents of newborns,
Cuts to income tax and the USC,
250 euro worth of energy credits,
Free schoolbooks for children up to Leaving Cert,
As well as extra funding for the big picture items like housing, health and childcare,
And that’s all before they announce what they plan to do with 17 billion euro from the Apple tax and AIB shares money.
The finer details are on the way, with Jack Chambers taking to his feet in the Dáil chamber in the next few minutes.
Speaking ahead of the announcement, a Clare Government senator has defended the retention of the Universal Social Charge in Budget 2025.
The USC is a tax on income which was introduced at the height of the financial crisis in 2011 and was intially intended to be a temporary measure.
Today, the rate of USC for those earning between €25,760 and €70,044 has been reduced from 4% to 3%, having been reduced by 0.5% last year.
Ennistymon Fine Gael Senator Martin Conway says if the tax was abolised, the State would have to make up the loss in other areas.
One area that many hoped in vain would receive attention in the Budget was the hospitality VAT rate.
Hospitality businesses enjoyed a 9% rate during the pandemic but the previous 13.5% was reinstated last August and has been in place since.
Although many including Enterprise Minister Peter Burke have backed calls for the reintroduction of the lower 9% rate, no change has been implemented in Budget 2025.
Inagh Green Party Senator believes the Government’s failure to listen to businesses on this matter shows it’s not taking the challenges facing the sector seriously.
You can listen to the full interview here:
