Taoiseach says carers and elderly to be among Government priorities in budget

Carers, the elderly and those with disabilities will be a priority for the Government in the upcoming budget, Taoiseach Simon Harris has said.

Speaking on his arrival at Tuesday morning’s Cabinet meeting at Government Buildings, Mr Harris said there had been a number of “very intensive” engagements between the Coalition party leaders and Minister for Finance Jack Chambers and Minister for Public Expenditure Paschal Donohoe.

He would not be drawn on the split between taxation and spending measures, but said the budget would provide “real and practical assistance” to working families and working people.

He also said “significant support” would be targeted at older people, carers and those with a disability. “These will be priorities for us in the weeks ahead,” he said.

Mr Harris said that in keeping with recent years, more would be done on the spending side than through tax cuts, but that it was important to keep pace with rising incomes and deliver a tax package which ensures people do not move into higher bands of taxation while they were still coping with rising prices.

He said investment in new long-term climate and infrastructure funds was important but that while inflation had come down, it has done so from an extremely high level and “people are still hurting”.

“It’s a balance between protecting our economy … but also recognising that we live in a society where people are still hurting.”

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Against the backdrop of exchequer figures released last year which showed the total tax take had increased by nine per cent relative to the same period in 2023, Mr Harris said every budget when the economy was doing well “does try to give back people some of their own money” while also supporting those in society who need it most and that would be the approach taken.

He said it would be an expansionary budget but would safeguard the future of the country.

Senior sources on the Fianna Fáil side of Government were keen to play down the prospects of a restoration to the 9 per cent VAT rate for hospitality, saying that it would take up “half the entire tax package”, which it expected to be in the region of €1.4 billion when the budget is announced.

Instead they point to a tax package to be delivered by Mr Chambers that is likely to concentrate on lower and middle earners, with indexation of the tax bands and possibly cuts to USC using up the bulk of the available money.

Mr Chambers and Mr Donohoe are to host a press conference on the publication of the Government’s Summer Economic Statement later.