In its prospective budget for 2025, Sinn Féin has detailed plans for additional spending and lowering of taxes worth a total of €12.4 billion. This is €4 billion in excess of the government’s proposed expenditure. Proposals, which were laid out on Thursday, encompass several significant spendings, with the foremost being the elimination of Universal Social Charge (USC) for individuals whose income is €45,000 or lower.
On coming into power, Sinn Féin declares that it intends to start with the removal of USC for those earning less than €30,000 initially, at the financial burden of about €1 billion to the treasury. Gradually over their term the abolishment of USC would be stretched up to the €45,000 mark which would result in a yearly decrease in state revenue by €2 billion.
Furthermore, Sinn Féin has affirmed commitments to eradicate student fees (lowering them by €1,500 the coming year), do away with the TV license fee, reduce childcare cost to €10 daily, increase child allowance by €10 monthly, grant a €100 tax credit to laborers and build 21,500 social and affordable homes in 2025. The additional capital expenditure for these plans amounts to nearly €4 billion.
Under separate living expense proposals, the party has assured €2.3 billion once-off payments involving twin separate child benefit payouts in October and December, €450 in power credits and a rollback of a duty increase on fuel, that came into effect last August.
On unveiling the proposals, the party leader Mary Lou McDonald ensured that Sinn Féin in power would make certain that all funds spent would offer value for money, expressing the party’s intent not to squander public funds but use them for improvement.
In addition, Sinn Féin’s budget would also halt a potential rise in carbon tax, offer a provisional mortgage interest-relief scheme, and implement increases in state pension and social welfare amounting to €12. They also aim to enhance the minimum wage by €1.10 per hour under their plans.
Sinn Féin has proposed a financial package of €12.4 billion, which contrasts with the Government’s dedicated €8.3 billion towards increased expenditure. Sinn Féin pledged to implement revenue-generating measures, predominantly aimed at higher-paid individuals, to finance this package.
The measures include a solidarity tax of 3% for those earning over €145,000 and a phased removal of tax credits for individuals earning above €100,000. The party’s budget also recommends a rise in residential stamp duty to 2% for residences over €700,000 and 5% for those over €1 million. At present, the rate is 1% for homes up to the value of €1 million, increasing to 2% thereafter.
Party leader, Ms McDonald, rejected accusations of being overzealous in her spending promises, affirming the need for these investments for those struggling with home ownership. Mr Doherty, the finance spokesperson, suggested that future economic growth would fund the party’s initiatives.
Conversely, the Social Democrats plan to prioritise public services over one-time measures by chiefly targeting the lesser-earning portion of the society for tax cuts in a lean tax duvet. The party revealed a budget that promises 12,000 social housing units and 10,000 affordable homes over and above what the government has already budgeted. Their commitment also extends to the establishment of a publicly owned childcare sector, a €861 million expenditure towards a €25 weekly boost in social welfare payments and an extension of parental leave by four weeks per parent.
They propose raising €140 million by discontinuing various tax privileges for institutional property investors. They are also proposing a one-off cash subsidy driven by pandemic-era income support initiatives based on household earnings, instead of one-off universal electricity credits. The cash payments would be incrementally reduced from €260 to €120 based on earnings, disqualifying families with earnings exceeding €120,000 from this scheme.
The Social Democrats propose various measures to boost revenue, including doubling the bank levy, raising employer PRSI by a quarter of a percent, introducing a windfall tax on energy firms, upscaling stamp duty on stock trades to 1.3 percent and taxing super wealth on properties worth more than €2 million – but this does not include family residences, farming assets and pensions. This strategy is predicted to generate just shy of €2 billion, according to the party.
In their budget suggestions, the Labour Party puts a significant emphasis on childcare. They propose a cap on parent contributions at €50 per week in a newly established public childcare system. The party pledges a gradual shift towards a completely public childcare service over a span of years, with the inclusion of 30,000 additional spots for children through the term of the next government.
The party predicts that the first year’s running costs for 6,000 spots, disseminated among 100 services, will be around €53 million. Furthermore, the Labour Party proposes setting aside €50 million for the construction of relevant buildings and facilities. They also propose reallocating the present €20 million capital investment allowed to private providers to the public model.