Tag Archives: Budget 2016

Geography-Rory-Hearne-NUI-Maynooth

Dr Rory Hearne

Dr Rory Hearne, a lecturer in political and economic geography at National University of Ireland, Maynooth, has looked at Budget 2016.

And his verdict is in…

“Firstly, it is to be welcomed that, rather than further austerity, the government has decided to increase public spending and investment, particularly in the area of childcare, education and the extension of free GP care.”

“However, the increase in spending is insufficient to address the various social crises and austerity related under-investment and the indication is that this is just a once off ‘stimulus’ in an election year with government estimates showing no similar expenditure increases in coming years.”

“The increase in spending in this Budget of €750 million should also be put in the context of the €21bn reduction in expenditure over the period of 2008 to 2014. The increase in Budget 2015 is just 1/30th (just under 4%) of the austerity cuts to spending.

“…Social housing is a good example of the size of the catch-up required as a result of the lost years of austerity. Over the period of austerity, we effectively lost 25,000 social-housing units. Indeed those in housing distress (at least half a million households – most noteably those reliant on rent supplement, in emergency accommodation, in mortgage arrears, those in housing waiting lists, substandard accomodation and in light of the recent tragedy, Traveller accommodation and halting site services) are the biggest ‘losers’ in this Budget.”

In addition…

“The delivery by NAMA of 20,000 housing units is being put forward as a positive measure to address supply. However, these were planned anyway and as Minister Noonan stated will be developed on a commercial basis with aim of maximising return to the taxpayer. This means they will be neither social nor affordable. “

Budget 2016: Opportunity missed to address social crisis, particularly housing, as chronic under-investment in infrastructure continued (Rory Hearne, Progressive Economy

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Earlier:

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Brendan Howlin, Minister for Public Expenditure and Michael Noonan (left) at government buildings this afternoon.

(Sam Boal/RollingNews.ie)

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Taoiseach Enda Kenny speaking to media outside the Dáil this morning

Ahead of the Budget being announced this afternoon…

RTÉ’s political correspondent Martina Fitzgerald reported on Morning Ireland earlier:

“It’s reported this morning that the old age pension will be increased by €3 a week. Other measures include the restoration of the Christmas bonus to 75 per cent of what it was before it was abolished in 2009. The fuel allowance is going to rise by €2.50 per week from January, which will affect 380,000 households. The respite care grant will be restored in full. Around 2,200 new teaching posts will also be announced, 600 of the recruits will be resource teachers for those with special needs.”

“At least 500 additional Garda posts will also be announced. A childcare package will provide for two weeks’ paid paternity leave, free pre-school from three years of age and an expansion of the community childcare subvention programme. There will also be €120million additional money for housing. On the tax see, the price of a packet of cigarettes will rise by 50 cent. Most of the tax package will focus on the USC and a tax credit for the self-employed. There would be a reduction in the first three USC rates and the threshold for which people pay the tax will rise to €13,000.”

UPDATE:

Meanwhile, not in the Budget…

The Irish Times reports:

“Taoiseach Enda Kenny has said measures on rent, which the Government has failed to agree ahead of the budget, will continue to be worked on by the Coalition parties.”

“He said Minister for the Environment Alan Kelly and Minister for Housing were looking at a package of measures “that will deal with the question of the supply side” of housing, “which is the real problem here”.”

“Mr Kenny said discussions would continue between these two Ministers and Minister for Finance Michael Noonan to determine how to proceed “without interfering with the market to its disadvantage”.”

Budget speeches are expected to begin at 2.15pm.

Rent measures to be excluded from budget after disagreement (Irish Times)

Budget 2016: Tax credits and USC reductions on way (Irish Times)

Sam Boal/Rollingnews.ie

CrystalBall

Budget 2016??

Some crystal balling.

Taoiseach Enda Kenny has said the top tax rate on middle-income families will be dropped to a maximum of 50 per cent in 12 months’ time, all but confirming plans cut the upper income tax rate to 39 per cent in the next budget.

Mr Kenny remarks, in a Dáil speech this afternoon, are also seen as a clear indication that the new upper USC rate of 8 per cent on income exceeding €70,000 would be increased to 9 per cent when the top income tax rate is cut again.

This also implies that the two lower USC rates would each be cut by a further half percentage point to 1 per cent and 3 per cent respectively.

Want to see what that will all mean to you (should it all come to pass)?

We have Karl’s Budget 2016 calculator prepared already!

Click HERE

Taoiseach pledges to cut income tax rate again in next budget (irish Times)