Finance Minister Jack Chambers has quashed any speculations of further tax deductions for property owners in the Coalition’s ultimate budget, despite appeals from his party associate, Minister for Housing, Darragh O’Brien. Chambers emphasised the alterations introduced by his Finance Department predecessor Michael McGrath in the past year’s fiscal plan.
“Last year, McGrath brought about shifts and we projected a two to three-year course of action on its implementation to deal with specific spendings for landlords who remained in the business. It’s time to give them room to adjust. I don’t foresee any future tax reductions,” he reiterated.
For the 2024 budget, the government conceded to tax incentives granting landlords tax deductions ranging from €600 to €1,000, until the year 2027.
Chambers additionally mentioned his concurrence with the government over the subject of a too-low inheritance tax threshold. He elucidated that he was considering options to adjust this within the 2025 budget framework, although no formal decisions were taken.
As to the demand by the business group to reinstate the 9% VAT rate for hospitality, Chambers said that with a €1.4 billion budget for tax cuts, his primary concentration was on income tax and not business taxes.
“There’s limited leeway for other tax categories,” he declared. As per the available budget additionality, Chambers stated that no decisions have been made. He believed that capital infusion and expansion of local enterprises surpassed the issue of taxation alone.
In response to queries about the augmentation of rights to sick pay, living wages and other employee privileges, which businesses claimed were raising their costs, Chambers conceded a significant cumulative effect from governmental rulings.
While the budgetary considerations need to be seen holistically, he acknowledged the importance of taking business concerns into account. His compatriot, State Enterprise Minister Dara Calleary, emphasised that since April, the government has injected €251 million into businesses to help with increased costs, describing it as a significant commitment.
Addressing the judgement by the Ifac, the national fiscal watchdog, about the impact of government spending on inflation, Mr Chambers defended the growth in government spending, asserting it was congruous with the prior year’s figures. In spite of this, the Coalition will surpass its own spending guidelines for the third consecutive year with a 6.9% increase, rather than abiding by a self-imposed 5% cap.
He pointed to government initiatives to finance long-term funds using surplus budget and highlighted the government’s duty to strike equilibrium between Ifac’s stance and those advocating for considerably higher spending growth levels.
Mr Chambers rebuked Sinn Féin for its proposal to use excess exchequer funds for housing, suggesting that logistical and resource restrictions are the real culprits behind restricted housing supply. He criticised Sinn Féin’s housing policy framework, released earlier this week, as overly controlling in its approach to homeownership, accusing the party of being misleading and deceitful.
Mr Chambers expressed concerns over the passenger cap at Dublin Airport, calling it a substantial threat to economic advancement and criticised the systemic delays in strategic blueprint activation. He asserted his complete support for the cap being lifted, arguing it was essential for numerous aspects including economic expansion, network enhancement, and promoting tourism.