Taoiseach Simon Harris has declared that the forthcoming government budget will prioritise carers, the elderly, and individuals with disabilities. He made the announcement at a Cabinet meeting in the Government Buildings on a Tuesday morning and referred to a number of meaningful interactions between the finance and public expenditure ministers, Minister Jack Chambers, Minister Paschal Donohoe, and the leaders of the Coalition party.
Harris did not disclose the budget’s distribution between taxation and spending, but guaranteed that the budget would bring tangible relief to the labor force and their families. He expressed that a large portion of support would be geared towards the elderly, those with disabilities, and caregivers, pronouncing these as the government’s imminent prime concerns.
Furthermore, Harris asserted that similar to past years more emphasis will be placed on spending rather than tax reductions, to harmonise with the growth in income and to ensure a tax plan that prevents citizens from moving into higher tax brackets amidst rising costs. He reaffirmed the importance of investing in new, long-term funds for climate and infrastructure, acknowledging that despite a decrease in inflation from its previous high, people continue to suffer financial strain.
Against the backdrop of exchequer figures from the previous year, showing a 9% increase in total tax collection compared to 2023, Harris stated that successful budgeting tries to return some finances to citizens, while also assisting the most vulnerable in society. This approach will be pursued in the forthcoming budget and it aims to secure the country’s future.
Senior sources from the Fianna Fáil side of the government were keen to downplay the likelihood of a restoration to the 9% VAT for hospitality, suggesting that it could consume half of the total tax package, projected to be around €1.4 billion.
Mr Chambers is predicted to mainly focus on reducing the tax burden for low and middle-income employees with his imminent tax proposal. Most of the available funds are likely to be allocated to adjusting the tax bands in line with inflation and potentially making substantial cuts to the Universal Social Charge. A press event is expected to be held by Mr Donohoe and Mr Chambers for the unveiling of the Government’s Summer Economic Report in due course.