LAST UPDATE | 1 hr ago
Note for iPhones users: if this liveblog appears dark or is difficult to read, please update your app.
FINANCE MINISTER JACK Chambers has finished delivering his first Budget in the Dáil, with Paschal Donohoe now standing to give details of the expenditure package.
Jammed with one-off cost-of-living measures and tax cuts, the €2.2 billion package is the government’s final budget before a general election takes place.
The Department of Housing is being allocated €7.8 billion, including the following:
Additional funding of €2.7bn will be given to the health sector over two years, bringing the total health allocation to €25.76bn, Donohoe confirms.
He says there will be an increase in the number of people working in the sector, and 495 new beds will be introduced across hospital and community services.
There will also be 600,000 additional home support hours and continued support for women’s health measures, including increased access to IVF and Hormone Replacement Therapy.
Funding for the National Childcare Scheme will rise by 44% which will result in a reduction in full-time childcare costs by €1,100, Donohoe says.
The Government has rejected calls from the hospitality sector to reduce the VAT rate to 9%.
VAT for the tourism and hospitality sectors was reduced to 9% during the Covid-19 pandemic at a cost of €1.2bn to the exchequer.
The previous 13.5% rate was reinstated last August, despite the sector’s opposition.
The Vintners’ Federation of Ireland said it is “gravely concerned” that there is no reduction in the VAT and that measures announced today “fall disastrously short of what is needed to protect a sector on the brink”.
Two double child benefit payments will be given to parents before Christmas, worth €280 per child.
The so-called ‘baby boost’ payment will grant a triple child benefit payment to new parents.
From next year, new parents will receive a one-off €420 payment as well as increases to maternity and paternity leave benefits.
Read more on these increases here.
Donohoe has confirmed a Social Protection package worth almost €2 billion.
Public Expenditure Minister Paschal Donohoe is now speaking.
He tells the Dáil that, since 2020, Ireland has faced unprecedented challenges including the Covid-19 pandemic, the war in Ukraine, and spiralling inflation.
As set out in the Summer Economic Statement, Budget 2025 sees expenditure of €154.4 billion, an increase of 6.9% on last year.
VAT on the installation of heat pumps will be reduced to 9%, down from 23%, in line with the Government’s National Retrofit Plan.
Charities will no longer have to be established for at least two years before they can access the Charities Donations Tax Scheme.
There will be no tax relief for gym membership. However, Chambers says his officials will work on this with a view to making a proposal in advance of Budget 2026.
The rate per tonne of carbon dioxide emitted by petrol and diesel vehicles will increase from €56 to €63.50 from next Wednesday, 9 October.
The Motor Insurers Insolvency Compensation Fund levy will be reduced from 1% to 0% from 1 January 2025.
The higher rate of stamp duty on bulk acquisitions of houses will increase from 10% to 15% with immediate effect.
The rate of stamp duty applicable to residential property valued above €1.5 million will increase to 6% with effect from midnight tonight.
The existing rate of 1% will continue to apply to properties valued up to €1 million, and 2% will apply on values over €1 million, with a third rate of 6% to apply to any property valued in excess of €1.5 million.
The rate of the Vacant Homes Tax is being increased from five to seven times the property’s existing base Local Property Tax rate.
Women impacted by the CervicalCheck scandal will now be exempt from income tax or inheritance tax.
Chambers says the move is another element “of the State’s response to the failures of the CervicalCheck screening programme”.
Those affected will no longer have to pay income tax, capital gains tax or capital acquisition tax.
Additionally, all future and historic income they receive in compensation payments will be tax-free.
The rent tax credit is set to increase to €1,000 per person next year.
In another boost for renters, the €250 increase has also been back-dated for 2024 so that people can claim €1,000 for this year.
The standard cut-off point for income tax in Ireland is being increased by €2,000.
This means workers will only pay the higher rate of 40% tax on income over €44,000.
Proportionate increases have been announced for married couples.
Chambers also confirmed that USC will be cut from 4% to 3%.
Read more on those changes here.
The threshold for when inheritance tax must be paid will increase from €335,000 to €400,000 for children who inherit from their parents.
Read more on that here.
The Government will increase the price of a pack of cigarettes by a euro from midnight tonight.
It will bring the price of a 20-pack of cigarettes to €18.05. The excise duty hike is twice the usual increase of 50c.
A tax on e-cigarettes will also be introduced, from the middle of next year.
From 2025, landowners will be able to avail for an exemption of Residential Zoned Land Tax if they wish for their land to be rezoned to reflect the activity they carry out on their land.
The VAT registration thresholds for the supply of goods and services will be increased.
The registration thresholds will rise from €80,000 to €85,000 and €40,000 to €42,500 respectively.
The 9% reduced VAT rate for gas and electricity will be extended until 30 April 2025.
The Government is also extending the relief for pre-letting expenses for landlords until the end of 2027.
The rental tax credit will increase from €750 to €1,000.
A couple in rented accommodation could claim €2,000 from Revenue.
The Help-to-Buy scheme will be extended until the end of 2029.
The Capital Acquisitions Thresholds, which apply to gifts and inheritances, will increase by the following amounts:
Employers will be able to give staff bonuses worth up to €1,500.
These benefits must not be in cash.
It’s an increase in the limit from €1,000 in last year’s Budget.
The following credits are being increased:
A personal income tax package of €1.6bn has been confirmed.
The rate of Universal Social Charge (USC) has been reduced from 4% to 3%.
The standard rate income tax cut-off point has increased to €44,000 from €42,000.
The Personal, Employee and Earned Income Credits will increase by €125.
As of 1 January 2025, the national minimum wage will increase by 80 cent to €13.50 per hour.
€1 billion will be provided to Irish Water for non-domestic capital investment, Chambers says.
Chambers says a further €1.25bn will be made available to the Land Development Agency, bringing the total amount of funding to the LDA to €6.25bn.
“The LDA will be tasked with deploying this capital in a way that can continue to drive the delivery of social and affordable homes.”
Chambers says Ireland in operating in a global environment where competition for attracting foreign investment is intensifying.
“Maintaining our competitiveness and having the means to improve it is vital to maintaining employment in all sectors of our economy, no matter where those jobs are located.”
He adds: “We know that our public finances are heavily reliant on corporation tax.”
Chambers says the economy is in good shape. He says the rate of inflation has been at or below 2% since March, which he says comes as “a welcome relief to households throughout the country”.
However, he says he’s aware that many are still struggling with high prices.
Jack Chambers is now on his feet in the Dáil chamber.
He says he believes Budget 2025 “puts in place the policies and the measures” that will continue Ireland’s “positive trajectory” and “ensure that all our people see a promising and hopeful future in this country”.
“Today’s budget is my first and is also a unique in the opportunity it presents to plan, transform and deliver for the future.
“And that future is not just about next month, next year or the next decade. It is about ensuring that the children born today in Ireland and every day from here on can live prosperous and fulfill lives.”
Here they are now.
Finance Minister Jack Chambers and Public Expenditure Minister Paschal Donohoe presenting the Budget at Government Buildings a few moments ago.
With less than half an hour to go before the big announcement, Finance Minister Jack Chambers thanks the staff who worked “through the night” to print the Budget documents.
"I'm at the printer in the Department of Finance where staff have worked through the night to complete all the printing of the #Budget2025. I look forward to setting out what we can achieve in 2025 and how we can set out a positive trajectory for Ireland."
— Fianna Fáil (@fiannafailparty) October 1, 2024
Minister @jackfchambers pic.twitter.com/0Nu0YihO15
“There is certainly lots of money to go round,” financial advisor Ralph Benson writes in this op-ed breaking down what is expected to be announced this afternoon.
“Tax receipts this year are up a whopping 12.6% on last year, and interest rates are falling.
So everyone will likely see a bit of upside in the announcements.
“But – with one exception, as we’ll see – there is little obvious appetite in the government for real financial reform of the hard problems in Irish society right now, such as lack of accommodation, transport infrastructure, controlling runaway costs on capital projects, public sector costs and efficiency, or dealing with our changing demographics and ageing population profile.”
People over the age of 70 will be able to bring another person on public transport free-of-charge under plans spearheaded by Social Protection Minister Heather Humphreys.
The measure, known as the ‘universal companion pass‘, will benefit tens of thousands of older people.
It is understood that Humphreys pushed for the measure in a bid to tackle isolation among older people.
Health Minister to announce expansion to free IVF scheme to allow couples with an existing child to access treatment. One element of the current criteria sets out that a couple accessing publicly funded IVF must have no living children together.
— Christina Finn (@christinafinn8) October 1, 2024
Health Minister Stephen Donnelly is set to announce an expansion to the free IVF scheme to allow couples who already have a child to access treatment.
It will reverse one element of the scheme’s current criteria which requires that a couple accessing publicly funded IVF must have no living children together.
There are plans to expand the scheme in two areas next year. The first of these will allow couples requiring donor assistance to access the scheme during 2025.
Here is the latest on what students are expected to get in Budget 2025:
Budget 2025 for students:
— Jane Matthews (@janeematthews) October 1, 2024
👉🏼Undergrads set to see a €1000 reduction on the student contribution fee this year bringing fees to €2,000.
👉🏼Once off reduction of apprentice contribution of €1,000.
👉🏼Post Grad supports will see fee contribution ⬆️ from €4,000 to €5,000.
Will you watch the Budget 2025 announcement?
Let us know in our poll.
It’s a fairly mixed bag so far.
Today is Jack Chambers’ first (and possibly last) Budget as Finance Minister.
As we wait for his announcement at 1pm, let’s take a trip down memory lane with some photos of Finance Ministers of the past on previous Budget days.
More details are emerging about health spending.
It’s understood that the sector will get almost €3 billion extra in Budget 2025.
The total health budget is expected to be a record €25.76 billion, representing an increase of €2.94 billion on the January 2024 allocation of €22.82 billion.
The following increases in spending are set to be announced:
While leaking the Budget is par for the course now, it was deemed unacceptable in the past.
Phil Hogan, then-Junior Minister for Finance, had to resign in 1995 after he admitted to leaking details of the Budget.
It emerged that one of his advisers had faxed (kind of like emailing over a landline – look it up, kids) details to the media, causing uproar.
The Rainbow Coalition was in power at the time, comprising Fine Gael, Labour and the Democratic Left.
In the weeks leading up to Budget 1996, opposition parties such as Fianna Fáil had been complaining that the coalition government had leaked more information than virtually any other administration.
More specifically, they said “sensitive market information” was being revealed to the media as a result of inter-party competition within the government.
In the end, Hogan resigned as junior finance minister on 9 February 1995 to avoid “damaging” the government.
Speaking in the Dáil chamber at the time, he said: “I am proud to belong to Fine Gael. A party with the highest ideals and values of honesty and integrity, whose members have always put the country rather than the individual first.
“To avoid any possibility of damaging a government led by Taoiseach John Bruton – a man of the utmost decency and understanding qualities – I have tendered my resignation from government and it has been accepted. The decision to resign is entirely my own.”
As is the tradition, much of the Budget is leaked in advance.
Parents will receive a double child benefit payment, and new parents will get a ‘baby boost’ payment totalling €420.
A reduction to the USC as well as increases to social welfare payments and the rent tax credit are also expected.
Our Political Editor Christina Finn has rounded up what we know so far about the cost-of-living measures and tax measures.
Our Political Correspondent Jane Matthews has been taking a look at how the day will play out.
Finance Minister Jack Chambers will deliver his inaugural Budget speech at 1pm in the Dáil, with Minister for Public Expenditure and Reform Paschal Donohoe set to outline public spending immediately afterwards at approximately 1.45pm.
The Dáil schedule is then cleared until 8pm to allow opposition TDs to respond to this year’s Budget.
Voting on the Budget will then begin at 8.30pm and is scheduled to last until midnight.
To embed this post, copy the code below on your site
have your say