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MINISTERS JACK CHAMBERS and Paschal Donohoe have finished their Budget announcements and the reaction is continuing to flow in from the opposition, NGOs and campaign groups.
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.
Pearse Doherty, reacting to the Government speeches in the Dáil on behalf of Sinn Féin, said it was “not a giveaway Budget” but a “giving up on housing Budget”.
Updates by Jane Moore (now) and Órla Ryan (earlier)
Thanks for staying with our coverage so far today.
I’m going to hand the liveblog over to my colleague Rónán Duffy, who will bring you all the latest updates for the rest of the day.
The Irish Congress of Trade Unions has agreed with SIPTU, calling the Budget “fiscally irresponsible”.
“We are using potentially transitory corporation tax receipts to fuel a pre-election giveaway,” the ICTU said.
“This decision risks pushing higher taxes onto younger and future workers and it simultaneously undermines our capacity to improve public services in the future. It is a return to reckless pre-crash budgetary strategies.”
The organisation welcomed the 80c increase in the minimum wage, saying the Government “must stick to its commitment to raise the minimum wage to 60% of hourly median wages by January 2026″.
It said that what workers ultimately need is collective bargaining, as promoted by the EU Adequate Minimum Wages Directive.
“That, along with expanded public services, is what will really help workers in the long run,” it added.
The ICTU claimed the biggest winners from the tax changes “will be the very wealthiest families benefiting from inheritance tax cuts, as well as those on higher incomes that stand to benefit from all of the changes to personal taxes”.
“The relative losers are those without wealth and workers on lower incomes.”
ICTU General Secretary Owen Reidy said Budget 2025 will be remembered as a lost opportunity “when we failed to properly grapple the crises in childcare, housing and numerous other areas”.
There is plenty of reaction coming in to the measures announced in Budget 2025.
SIPTU General Secretary Joe Cunningham has deemed it “fiscally irresponsible”, saying it constitutes a return to the type of pre-crash giveaway budgets.
“Cutting taxes, increasing spending and balancing the books with transitory and unreliable corporate tax receipts is a recipe for long-term instability in our public finances.”
According to Cunningham, the measures will hollow out Ireland’s tax base at a time of slowing growth, while the tax cuts will mean larger tax increases in the future as growth slows to 1% per capita in the years ahead.
“The reliance on temporary cost-of-living measures is cynical and only postpones the fall in living standards when these supports are withdrawn in the future,” he said.
This is a ‘buy the election’ budget that leaves the next government to clean up the mess.
He said that “throwing money into an economy at nearly full capacity” can drive up prices.
“House prices are likely to rise even more with the continuation of demand-led subsidies such as Help-to-Buy. Ireland has one of the highest living costs in Europe. This budget will only make this situation worse,” Cunningham continued.
“At a time of rising poverty, with nearly a quarter of a million children living in deprivation, the cuts in inheritance tax are particularly disgraceful. This tax cut makes a mockery of equality.”
Cunningham said that while the Government is right to use once-off revenue to address our housing infrastructural deficits, spending more money without resolving the labour shortages in the construction sector can potentially bid up costs.
“We could end up with illusory targets and higher prices.”
When asked whether every parent in Ireland needs the double Child Benefit payment, the Minister said that anyone who does not need it can give it back.
She said rearing children “is expensive” and that the payment was “very well received last year”.
“You might think that people don’t need it. Well if they don’t need it, they can give it back,” Humphreys said.
On the two double child benefit payments to be paid before Christmas, the Minister says it is being done because the single double payment was “very popular” last year.
— Jane Matthews (@janeematthews) October 1, 2024
She says if people don’t need it “they can give it back”. @thejournal_ie pic.twitter.com/QnQn8P7Awz
Social Protection Minister Heather Humphreys has announced that the auto-enrollment pension scheme will begin from 30 September 2025.
All employees who are not already in an occupational pension scheme, and are aged between 23 and 60 and earning over €20,000 across all of their employments, will be automatically enrolled.
It had initially been flagged for January 2025. When asked by The Journal why it is now being introduced in September 2025, Humphreys said there is ”a lot of work to be done between now and then to get it all up and running”.
Minister Heather Humphreys has announced that pension auto-enrolment will commence from 30 September 2025.
— Jane Matthews (@janeematthews) October 1, 2024
It was initially flagged to kick in from January 2025. @thejournal_ie pic.twitter.com/DB2HA44cxR
“We’re giving businesses a year median time, because there have been concerns about further expense on business,” she added.
Hello! Jane Moore here. Thanks for sticking with us so far.
I’ll be bringing you all the latest on Budget 2025 for the afternoon.
First things first – if you’re wondering how the announced changes will impact you, you can use our handy calculator to find out.
Thanks for staying with us so far today. I’m going to hand over the liveblog to my colleague Jane Moore who will keep you updated this afternoon.
#Budget2025 in short⬇️
— TheJournal.ie (@thejournal_ie) October 1, 2024
🧒Two double child benefit payments
💡Two €125 energy credits
💸Min wage will rise to €13.50
🍼€420 baby boost
🚬Cigarettes rise to €18.05
🏠Rent tax credit to increase to €1k
💰USC cut by 1%
🏘️Help-to-buy scheme extended to 2029
Something for everyone in the audience? Here are key points from Budget 2025.
Funding for an additional 400 staff has been allocated in the Budget to the International Protection Office.
Making the announcement this afternoon, Minister for Public Expenditure Paschal Donohoe said there would be a “significant expansion in the international protection processing system”.
Read more on that here.
Donohoe also announced that €2.1 billion will be provided to support accommodation for “those fleeing Russia’s illegal war in Ukraine and to those seeking International Protection”.
“In addition to the core funding for rural and community development for 2025, I am providing €13 million to help integrate arrivals from Ukraine into local communities,” the minister added.
Sinn Féin’s Finance Spokesperson Pearse Doherty has dismissed the Budget as “spin”, labelling the Government “serial wasters” who treat the public with “contempt”.
Donohoe says Budget 2025 will do little help the “deepening housing crisis”, people on waiting lists for health services, and autistic children who can’t get school places.
People see through the spin. People hear about the millions and the billions, but they don’t feel better off.
“For most people, it’s about what they have at the end of the week, when the bills are paid. ‘Is there anything left?’ is the question they ask, and the answer for far too many is no.
“Workers and families can’t afford another five years of Fianna Fáil and Fine Gael. And it is in that context that this Budget will be judged, how your parties will be judged also at election time.”
Doherty also said that homeownership has “collapsed under Fine Gael for young people”.
“There are 100,000 less people under the age of 40 that own their own home today than when Fine Gael came into government 14 years ago.”
He said it was “not a giveaway Budget” but a “giving up on housing Budget”.
There were a few items detailed in the Minister for Finance’s Budget speech aimed at incentivising uptake of electric vehicles, particularly among firms with commercial fleets, writes Assistant News Editor Valerie Flynn.
It comes as new figures from the car industry published today showed electric vehicle sales slumped almost a third year on year in September.
So far this year, just over 16,000 new electric cars have been registered in Ireland – that’s down from almost 22,000 in the same period of 2023.
That direction of travel is bad news for the government, which wants 30% of passenger cars to be electric by 2030 to help us meet our climate targets, as well as getting 95,000 commercial electric vehicles on the road and 20% electric lorries.
So what’s in the budget to help turn it around?
Benefit in kind (BIK) reliefs for electric vehicles will remain in place, while an exemption from BIK tax for installing an electric vehicle charger at a worker’s home has been introduced. This is likely to be welcome news for the car industry.
Measures were also announced to incentivise uptake of lower CO2 vans (through a new emissions-based vehicle registration tax regime) and of electric company cars (through changes to vehicle capital allowances).
Minister for Finance Jack Chambers said he hopes this last measure, which will kick in in 2027, will boost the second-hand electric car market.
An amendment to vehicle registration tax (VRT) rules is aimed at ensuring electric commercial vehicles can qualify for the €200 rate.
Here are some more details on the health funding confirmed today:
Donohoe added that funding provided in Budget 2025 will enable enhanced provision of services including:
Donohoe also announced the following:
“This Government is committed to building stronger, safer communities, and, with this in mind, I am announcing a package of over €3.9 billion euro for the Justice sector,” Donohoe says.
He said this allocation will allow for the following:
Funding of €3.9bn was been allocated for the Department of Transport, comprising €1bn in current funding and €2.9bn in capital funding.
“This will deliver more capacity on public transport routes we have,” Donohoe says, including further investment in cycling and walking infrastructure.
The young adult travel card (for 19 to 25-year-olds) and the 90-minute fare will both be extended.
Free public transport will be extended to children aged five to eight.
Over €1bn will be invested in the Department of Enterprise, Trade and Employment’s Jobs and Enterprise Development, Innovation and Commercialisation and Regulation Programmes in 2025, Donohoe says.
A €1.5bn package (up to 2030) has been announced for the National Training Fund.
This will include an increase in core funding to Higher Education by €150m per year as well as support for additional healthcare and veterinary places, and an increase in certain PhD stipends.
Wondering how Budget 2025 will affect your take-home pay?
Find out via our Budget Calculator.
Wondering how Budget 2025 will affect your take-home pay?
— TheJournal.ie (@thejournal_ie) October 1, 2024
Find out exactly how all the changes will impact your pay using our Budget calculator:https://t.co/saRi0UyFdI
More than €3 billion is being set aside between 2026 and 2030 to invest in climate transition, Donohoe says.
This will be used to support designated environmental projects that could assist with reducing emissions, or improving air quality or biodiversity.
Donohoe says that €472 million will be provided to the Department of Rural and Community Development to “revitalise” rural Ireland.
Over €2 billion has been allocated for the Department of Agriculture in 2025.
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.
He also confirmed the following:
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:
The entry threshold to the new 3% USC rate is being increased by €1,622 to €27,382, in line with the increase to the national minimum wage.
“This means that a full-time worker on the minimum wage will see an increase in their net take home pay of approximately €1,424 on an annual basis,” Chambers says.
“As a result of the cumulative increases to the main tax credits, a single person earning €20,000 or less in 2025 will now be outside of the income tax net,” he adds.
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.”
“Today’s Budget is my first and it is also unique in the opportunity it presents to plan, transform and deliver for the future.”
— Department of Finance (@IRLDeptFinance) October 1, 2024
— Minister @jackfchambers delivers his #Budget2025 speech.@merrionstreet @IRLDeptPER pic.twitter.com/QwwPkTLgL1
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.
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