Live Budget updates: Rise in cigarette prices, three electricity credits and social welfare increases announced 

Latest

Minister Donohue said the provision of housing "continues to be an absolute priority" for the government, stating that  just under €7bn in funding will be allocated to the Department of Housing, Local Government and Heritage, of which €2.6bn will be capital investment in housing.

Some of the measures that will be ed by this funding allocation include; €1.9bn in capital funding in 2024 to deliver 9,300 new build social homes €265m to the delivery of 6,400 affordable homes in 2024 and €242m for homeless services and accommodation with a further €35m in capital funding to the Housing First initiative and house homeless adults in permanent homes with wraparound s.

Minister @Paschald announces €242 million for homeless services and accommodation as part of #Budget2024 pic.twitter.com/4m3EkNT1cq

— Department of Public Expenditure (@IRLDeptPER) October 10, 2023

In relation to the health sector, the Minister acknowledged that recent years "have been a period of extraordinary challenges for our health service" and said Budget 2024 provides for a total allocation of €22.5bn. 

On transport, Mr Donohue said the budget provides €3.5bn to the Department of Transport; €892m in current and €2.7bn in capital funding.

This funding he said will , among other things, the construction of MetroLink, the Cork Commuter Rail project, and investment in electric and hybrid-electric buses and the essential infrastructure required for new bus and rail fleets such as the electrification of bus and rail depots, as well as €1.35 billion for the development, protection and renewal of our roads network.

As part of the Cost of Living Package, the eligibility for the Young Adult Card is being extended to cover adults aged 19-25.

Minister @Paschald announces funding to provide for the recruitment, training and of a net additional 400 military personnel in 2024 under #Budget2024 pic.twitter.com/69ohT5yr7z

— Department of Public Expenditure (@IRLDeptPER) October 10, 2023

Also among the headline measures announced by Mr Donohue, is funding to provide for the recruitment, training and of a net additional 400 military personnel in 2024 as well as posts across the Department of Defence and the Defence Forces to implement reform and in important roles such as cyber responders and analyst-capacity.

Minister Donohoe's speech in full 

The Minister has announced €67m to provide over 16,000 places under the Craft Apprenticeship system in 2024.

The Minister said the Budget will continue the high level of investment in the health sector.

He has funding for over 2,500 additional beds in hospital and community settings, and an increase of over 22,000 staff through additional recruitment.

The Minister has announces an increase of €12 per week for individuals in receipt of a weekly social protection payment.

The Government is to increase its allocations to the Department of Education. 

The Minister said that a further 200 school building projects will commence construction over the course of 2024 and 2025.

The Minister has announced funding to extend the free school books scheme to all Junior Cycle pupils in recognised post-primary schools within the Free Education Scheme from September 2024.

A number of changes have been announced for social protection payments. 

The hot school meal programme is to be expanded to another 900 schools. 

Parents leave is to be increased to nine weeks. 

The Domiciliary Care Allowance payment is to increase by €10. 

The Child Benefit payment is being extended to 18-year-olds in full-time education.

The income threshold on the Working Family Payment by will increase by €54 per week.

***

A number of one-off cost-of-living measures have been announced in the Budget. 

***

Minister for Public Expenditure Pascal Donohoe said that the Government is deeply aware of the needs of many and said that the foresight of the Government in putting away money will allow it to continue to people. 

He said the budget would provide an immediate response to those who need the most. 

***

Minister McGrath's speech in full 

The Help-to-Buy scheme is being extended to the end of 2025. The scheme will also be extended to applicants of the local authority affordable purchase scheme.

Minister for Finance Michael McGrath has announced that the Rent Tax Credit is being increased from €500 per year to €750 per year.

Changes will mean that parents who pay for their student children who have tenancies in 'Rent a Room' or 'digs' accommodation will be able to claim the Rent Tax Credit.

The Minister announced that this will be backdated to allow for claims to be made for the 2022 and 2023 tax years.

WATCH: Coverage of #Budget2024 from Dáil Eireann | Follow live updates: https://t.co/GHCMX8FYfR https://t.co/xga4cfI3o8

— RTÉ News (@rtenews) October 10, 2023

Mr McGrath also announced a temporary tax relief aimed at benefitting small landlords.

“In recent years, we have seen a decline in the number of small investors in the market owning one or two properties.

“86% of landlords in the market own just one or two properties and they have a vital role to play.

“With that in mind, I am introducing a temporary tax relief which will primarily benefit small landlords,” he said.

Subject to certain conditions being met, rental income of €3,000 for the year 2024, €4,000 for 2025 and €5,000 for the years 2026 and 2027, will be disregarded at the standard rate.

A stipulation of the measure is that the properties held by the landlord availing of the relief must remain in the rental market for four years, otherwise the full amount of the relief will be clawed back.

Budget 2024 has also introduced a one-year Mortgage Interest Tax Relief for homeowners with an outstanding mortgage balance on their primary dwelling house of between €80,000 and €500,000 as of December 31, 2022.

Minister McGrath said relief will be available on increased interest paid on mortgages this year as compared with the amount paid last year, at the standard rate of 20% income tax.

He said the relief will be capped at €1,250 per property.

Tackling vacancy is, Mr McGrath said, a "priority" for the Government, announcing that the Vacant Homes Tax is to increase to five times the property’s existing basic Local Property Tax rate. The increase will take effect from the next chargeable period, commencing this November.

Regarding benefit in kind (BIK) regime for company cars, Mr McGrath said he is extending for a further year the temporary universal relief of €10,000 to the Original Market Value announced earlier this year.

"In order to encourage the use of electric vehicles for company car purposes, I am temporarily suspending the tapering of the preferential BIK relief. 

"I am therefore maintaining the existing €35,000 Original Market Value reduction for 2024 and 2025.

"Taken together with the extension of the universal Original Market Value relief of €10,000, this measure will mean that an employee with an electric company vehicle will see an overall BIK Original Market Value relief of €45,000 in 2024," he said. 

The Minister said he is conscious the price of petrol and diesel for motorists has increased in recent weeks and said he has decided to defer the final tranche of fuel excise increases which were due to happen at the end of this month. 

"I will restore the outstanding amounts of 8c on petrol, 6c on diesel and 3.4c on Marked Gas Oil in two equal instalments on 1 April 2024 and 1 August 2024," he said. 

The excise duty on a packet of 20 cigarettes will increase by 75c, with a pro-rata increase on other tobacco products. 

This will bring the price of cigarettes in the most popular price category to €16.75, Minister McGrath said. 

He said he is also proposing to introduce a domestic tax on e-cigarettes and vaping products in next year’s budget.

The Finance Minister has also announced a package of wide-ranging measures aimed at ing Irish enterprise.

These include Capital Gains Tax Relief for angel investors, and an increase in the Research and Development Tax Credit.

A range of climate measures, including extending the VRT relief for battery electric vehicles for a further two years to the end of 2025 and extending the  accelerated capital allowances scheme for energy efficient equipment for a further two years have been announced as part of Budget 2024. 

Also among the headline measures announced in Budget 2024 was the announcement of two major new funds, the Future Ireland Fund and an Infrastructure, Climate and Nature Fund.

The Future Ireland Fund, "with a potential to grow to over €100 billion by the middle of the next decade, will help to protect living standards and public services for current and future generations", Mr McGrath said. 

Separately the Minister said €14bn will be put aside in the Infrastructure, Climate and Nature Fund by 2030 to allow for sustained levels of investment in infrastructure in the event of economic downturns and to climate and nature related projects.

Budget announcement commences

The Minister for Finance Michael McGrath and Minister for Public Expenditure and Reform Paschal Donohoe have arrived at Leinster House for the Budget 2024 announcement. 

Cork's Minister for Finance Michael McGrath acknowledged it was his first budget as Minister for Finance and said he was privileged to do so. 

The Minister said the budget would mark a step change in how the country plans for the future. 

He said the budget would ensure "opportunity for all" and provide a safety net for those who need it. 

The Minister said while the economy is in a strong position today, he was aware of the external factors which could impact the economy. 

He spoke about the impact of inflation and said he expects that this will improve in the next 12 months. 

He also referenced a decline in the price of electricity costs but acknowledged that these costs are still a concern for people and said that the Budget would provide measures to address this. 

The Minister announced a number of changes to minimum wage and to tax. 

From January the minimum wage will rise to €12.70. 

Personal, employee PAYE and earned income tax credits are being increased by €100 each.

The standard rate income tax cut-off point is being increased to €2,000 to bring entry to the higher rate of income tax to €42,000.

The Minister announced a number of changes to income tax including reducing the 4.5% rate of USC to 4%. 

The Vat rate for gas and electricity will stay at 9% for 12 months. 

From earlier:

A mortgage interest relief plan which would see households recoup a maximum of €1,250, subject to certain conditions is among the measures expected to be announced in Budget 2024 this afternoon. 

A cut in the universal social charge (USC) is also planned, it is understood; the 4.5% rate is expected to be lowered to 4% and the point at which you pay that higher rate is to be extended by €2,800.

There will be nine lump sums paid out over winter months worth €1.2 billion, it is understood.

This includes a double child benefit payment (€280); €200 for living alone allowance recipients; €400 for those on the carers grant; €400 for those on the disability grant; €400 to people on the working family payment; a €300 payment for those receiving a fuel allowance; and €100 for qualified child bonus recipients.

There will also be a Christmas bonus and January bonus for social welfare recipients.

Minister for Education Norma Foley will extend the free books scheme to first, second and third-year secondary school pupils. This will cover books as well as items such as copybooks and calculators.

The extension of the scheme is worth €55 million and the scheme in total is now expected to benefit 770,000 young people.

A rise in the minimum wage and measures to help landlords and renters have also been widely floated.

Budget 2024 is to be announced today with Finance Minister Michael McGrath and Public Expenditure Minister Paschal Donohoe set to deliver the details in the Dáil at lunchtime.

The total cost of Budget 2024 is around €6.4 billion, with taxation measures worth €1.1 billion of the total.

It is already well reported that measures to help households tackle the cost-of-living crisis are to be revealed as part of the government’s budget.

Mr McGrath indicated that people’s standard of living would improve on the back of the budget, and said he hoped the measures would have their desired effect.

“We’re in the final stages now of preparing Budget 2024. My work in preparing the Budget started back in early summer…I believe it will be a very good budget helping households and businesses with the cost of living.”

- Minister @mmcgrathtd pic.twitter.com/Jyl8OvygPL

— Fianna Fáil (@fiannafailparty) October 9, 2023

Government figures have signaled the Budget will include pension and welfare increases, alongside a further rise to the minimum wage.

Core welfare payments 

Minister for Social Protection Heather Humphreys confirmed that welfare rates will increase for pensioners, carers, people with disabilities and working families in Budget 2024.

Increases in core welfare payments of €12 per week are expected to be announced. 

Paddy O’Brien, an advocate in Cork for older people, welcomed the rise in the State pension that is expected to be announced today.

Mr O’Brien, who is also the organiser of the long-running Over 60s Talent Competition, said some older people have been “finding it difficult to exist from week to week”.

He said this was the case, particularly with the rising cost of energy in recent years, and that a €12 increase in the State pension “would be a help”.

“Of course, it would be great to get more but I think €12 would be acceptable,” he said.

A cut in the universal social charge (USC), mortgage interest relief and measures to help both landlords and renters have also been widely floated.

It is additionally expected to feature s for businesses, farms and additional funding for gardaí.

Taoiseach Leo Varadkar has said there will be a focus on children throughout the budget, particularly in the areas of social protection, education and childcare.

Minister for Children Roderic O’Gorman had previously pledged to halve childcare fees across two years.

Last year’s budget delivered a 25% cut, but it has not yet been confirmed if the second 25% reduction will kick in this year.

A number of one-off lump sum payments are also expected to be announced today including payments for carers, those receiving disability payments and those in receipt of the fuel allowance. 

An extra children's allowance payment could also be on the cards before Christmas, according to reports this morning. 

Tone of caution 

However, the ministers struck a tone of caution last week as September’s exchequer returns revealed a slowdown in corporation tax receipts for the second month in a row.

With the quarter three returns falling short of projections, Mr McGrath said the figures were a timely reminder of the need for careful management of the public finances.

Ahead of his first budget as Finance Minister, Mr McGrath said: “Given capacity constraints, and the fact that inflation still remains high in comparative , there will be a limited amount of space available this year for temporary once-off s to assist with the cost of living focused, where we can, on the most vulnerable.” 

Amid continued high fuel and energy prices as well as increased grocery prices, senior coalition figures had already indicated that the one-off measures to tackle the cost-of-living crisis will be of a smaller scale than last year.

The Government has defended this move by saying inflation has moderated and wage increases across the economy have outpaced rising prices since last year.

The public is expected to see some benefits of the reduced cost-of-living package before Christmas.

However, one-off electricity credits are expected to be smaller than the three €200 energy credits in Budget 2023.

It is reported that three energy credits of €150 could be expected instead. 

Green party leader and Minister for the Environment Eamon Ryan told reporters on Monday that Government will have temporary s to deal with the “high energy crisis period”, adding that energy credits would not be “that dramatically different” to those announced last winter.

PRSI increase

Green party leader and Minister for the Environment Eamon Ryan said a PRSI increase was being examined as “the right thing to do”.

“We need some tax-raising measures. We have to get the balance here. The economy is at full tilt – we have to protect people from the cost-of-living impacts but at same time, we have to make sure that we maintain sustainable public finances.” 

Important times for today's budget 

Minister McGrath will begin his Budget speech in the Dail at 1pm, followed by Minister Donohoe at 1.45pm and opposition replies from 2.30pm.