Govt to unveil ‘pro-investment’ Budget, minimum wage rise
The Government is going to unveil a “pro-investment” Budget this afternoon with limited benefits for middle income workers.
There will be a €10 increase in the State Pension and social welfare rates.
There will be 860 additional special education teachers and 1,700 new special needs assistants.
The Basic Income for artists of €325 per week which has operated on a pilot basis will become a permanent scheme.
For businesses there will be an increase in the tax credit for Research and Development.
There will also be more funding for Tourism Ireland to market direct flights to Ireland.
Fáilte Ireland will get an expanded remit for food business following the State body’s move to the Department of Enterprise.
VAT for the hospitality industry will be reduced for cafés, restaurants and delis from 13.5% to 9% in July of 2026 at an estimated cost of €232m for the State next year.
Reducing the tax on the sale of new apartments by a similar amount is expected to cost €250m.
Continuing the renters tax credit at its current level of €1,000 for an individual and €2,000 for a jointly assessed couple will cost €350m.
Rolling over the reduced cost of 9% VAT for gas and electricity customers is expected to be €254m.
Mortgage interest relief, which has benefitted more than 60,000 householders, will be extended for another year before being gradually phased out in 2027.
The minimum wage is also expected to increase from 1 January.
It follows a recommendation by the Low Pay Commission, which is made up of representatives of employers and trade unions, to hike the minimum wage by 65 cent to €14.15 for workers over 20 years.
This is expected to result in an adjustment to the Universal Social Charge and employers’ PRSI to ensure workers on the minimum wage do not fall into higher rates of tax.
There will be a rise in the carbon tax and the main tax bands will be left unchanged.
A permanent reduction to college fees of €500 has been signed off.
However, the Opposition has criticised this as it is leaving fees €500 higher than existing levels.
The Government has promised to abolish the means test for the carer’s allowance over the lifetime of the Coalition. It will increase in the income disregard for the payment to allow more people to qualify for it.
With no energy credits this year, it is expected that eligibility for the fuel allowance will be expanded.
Article Source – Govt to unveil ‘pro-investment’ Budget, minimum wage rise