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Budget 2022: What can we expect - and what are the non-runners?

The budget will take place on 12 October.

BUDGET DAY IS just over a week away, and the kites are already flying.

Finance Minister Paschal Donohoe indicated this week that the government is expecting to see a “very strong rebound” in the Irish economy.

But he also said he would not use the better-than-expected growth to further increase the amount of money available for spending hikes and tax cuts in Budget 2022.

The €4.7 billion package is still being finalised – with budget haggling between the Department of Finance and other departments expected to go down to the wire next week.

Not everyone will get the chunk they want from the €1 billion available for new spending, some of which has already been earmarked. There is around €500 million available for new tax cuts – or ‘tax measures’ as the government would seem to prefer us to call them, as they’ll mainly be used to offset inflation against people’s incomes.  

So what can we expect to see and what are the non-runners?

Income tax

At the weekly Fine Gael parliamentary party meeting this week Tánaiste Leo Varadkar gave some details to his members about what to might expect on the tax side. 

But the truth is, there will be minimal changes to income tax in Budget 2022.

Varadkar said there is a need to protect middle income earners from inflation and the rising cost of living, as inflation expected to peak above 4% in the final quarter of the year, before falling back below 2% in the third quarter of 2022.

The Tánaiste said that indexing tax credits and tax bands will instead help workers.

The programme for government states that from Budget 2022 onwards, as incomes begin to rise, credits and bands should be index linked to earnings.

The government says this needs to be done to “prevent an increase in the real burden of income tax, to prevent more low income workers being taken into the tax net because of no changes to the tax system and to ensure there is no increase in the number of people having to pay higher income tax and USC rates”. 

Booze and Cigs

Due to the immense difficulties experienced by the pub and restaurant trade over the last year, it is not expected that the price of alcohol will rise this year.

Typically, the price of cigarettes has risen year-on-year, and this could be the case again.

Social welfare

Social Protection Minister Heather Humphreys said she will focus on the vulnerable, and hopes to improve the situation for those reliant on social welfare payments in this year’s Budget. 

There have been indications that there could be an increase in Jobseekers Allowance, given the rise in the cost of living, and also due to the tapering off of the Pandemic Unemployment Payment (PUP) which was paid at a higher rate than Jobseekers over the last year. 

Varadkar told the Dáil this week that an increase to the current minimum wage is needed as the cost of living rises.

It is currently €10.20 but there is no indication as to what it might rise to.  

Pension 

There has been no pension increase in the last two years.

Again due to the rise in the cost of living it is expected it will rise by at least €5, though there have been calls for it to increase by €10-€15, which would be an unprecedented move.

Fuel Allowance 

There has been lots of talk about energy costs recently. The government aims to tackle the problem in the budget by increasing the fuel allowance.

The Taoiseach confirmed that “in the forthcoming budget we will seek to protect the lowest income groups and those most impacted by increasing fuel prices – so that will be an objective of ours.

“We are conscious of, on the welfare side, the fuel allowance and the whole area around energy costs rising across Europe.”

Remote working 

Varadkar has said that within the €500 million tax package, there will be measures to promote remote working.

“What we’d like to do is to have a system whereby if someone is working from home and they incur costs, particularly utility costs, they’d be able to defray that in some way against the tax they pay. That exists already but it hasn’t been updated in many years,” he said. 

Christmas Bonus

The government would be foolish to pull back on the Christmas bonus when they have paid it out consecutively over the last number of years. 

The Christmas Bonus payment (an extra week’s payment) is normally made to people who are in receipt of long-term social welfare payments and who are entitled to a normal payment in respect of the week that the bonus is paid.

People who are unemployed for less than 12 months do not normally receive this payment. As an exceptional measure last year due to the pandemic, the bonus payment was made to people in receipt of PUP or a jobseeker’s payment for at least 4 months (17 weeks).

One to watch this year.

Help to Buy Scheme

Housing is the biggest issue for this government, so expect to hear lots of talk about the government’s Housing for All plan and how much money they are going to be spending on it this year. 

One aspect of it that we know will be included in the Budget is the Help-to-Buy Scheme. Housing Minister Darragh O’Brien previously told The Journal that he wanted to see the scheme extended into next year. It is due to expire at the end of December. 

Under the scheme, first-time home buyers are able to apply for a grant of up to €30,000.

The Tánaiste confirmed this week that it will be extended into next year. It’s not believed that the cap of €30,000 will be raised. 

Tourism voucher 

Remember the Stay and Spend Scheme? Well, a new voucher scheme – one that is hopefully less cumbersome – could be announced on Budget Day in a bid to boost domestic tourism in the off-peak season.

Pandemic bonus

Taoiseach Micheal Martin has confirmed that the expected pandemic bonus for frontline workers will not be announced on Budget Day, telling reporters it is “not a Budget Day issue”.

Due to the ongoing debate about the bonus and who should get it, the government is adamant it does not want that narrative overtaking other announcements made on Budget Day, and therefore the details are likely to emerge shortly after 12 October.

A tax-free voucher of up to €500 and an extra bank holiday are amongst measures under consideration.

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28 Comments
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    Mute Jules Lucas
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    Mar 4th 2013, 12:48 PM

    The impact of this scandal has done wonders for the local village butcher, which we are better off buying our meat from anyway in my opinion!

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    Mute Christmas Carroll
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    Mar 4th 2013, 12:56 PM

    Completely agree! Never mind the fact that at least you know what you’re getting is the real deal, it’s much healthier and tastes a hell of a lot better… Makes the extra money spent worth it!

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    Mute Figo murphy
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    Mar 4th 2013, 1:01 PM

    I agree. My local butcher is flying. He just bought a new car, he got rid of that old horse he used to go around on.

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    Mute Christmas Carroll
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    Mar 4th 2013, 1:03 PM

    Dammit Figo :-P

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    Mute Dodge Challenger
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    Mar 4th 2013, 12:53 PM

    Will this horse meat issue ever go away? It’s not that much of a big deal. Not to ruin any appetites but could you imagine the amount of little insects and other creatures that get minced in with the meat supply that we never know about.

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    Mute susanna smyth
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    Mar 4th 2013, 12:56 PM

    Burgers are tested for horse meat only. What other nasty could be in there disguised as beef ?

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    Mute Bo11ocks_to_this
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    Mar 4th 2013, 1:19 PM

    Did anyone else see the article from SA about water buffalo, horse and others found in beef. I’ll try find a link

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    Mute mcgoo
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    Mar 4th 2013, 1:15 PM

    A bit ironic that “Kanter” did the study eh?

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    Mute pat aherne
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    Mar 4th 2013, 1:21 PM

    When we were starting our then 18 month on meat (2years ago) my wife decided to get supermarket burgers just in case he did not like them – well to tell you the truth he pretty much threw the burger back at her. I said why not try butcher meat it will taste alot better and healthier for the child. She got a 1/4 pounder and he ate 2/3 of it. Hence even an 18 month old knew the taste of quality !!

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    Mute clareo79
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    Mar 4th 2013, 2:07 PM

    You gave an 18 month old a burger?!

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    Mute mister
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    Mar 4th 2013, 12:51 PM

    Interesting article. If I’m reading those stats correctly, does this indicate that ordinary local butchers have not experienced a bounce in trade? And if not, I wonder why?

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    Mute Hippocrateeth
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    Mar 4th 2013, 12:57 PM

    In other news, the number of horses commuting on the Dart has risen by over 800% in the past week. Community watch locals report a growing number of incidences involving horses some described as having ‘brazen attitudes’ and ‘brass balls’ towards concerned travellers waiting on the platforms for their respective trains. In a more striking example of the intimidation by the footloose horses, a 6-pack box of Silverdale frozen burgers was kicked at an elderly man’s head causing the man to curse loudly at the ebullient edible equine. The man was later taken for questioning. A file has been sent to the office of the DPP and a request for legal aid has been sought.

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    Mute Dave Kavanagh
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    Mar 4th 2013, 1:18 PM

    Great the media is loving this story and in doing so are systematically destroying one of Irelands core industries. Dont get me wrong I am totally for a free press but some of the sensationalism printed about this scandle (storm in a teacup) in relation to its connection with Ireland has been pure speculation and even when facts where established the Irish connection was still bigged up. Journal well done on being responsible and accurate if only other media would follow your example.

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    Mute Barry McSweeney
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    Mar 4th 2013, 3:22 PM

    If anyone is destroying one of Ireland’s core industries it is those who sold contaminated meat, the officials who refuse to admit that traceability “from farm to fork” is a lie, and the businessmen who refuse to speak publicly about what happened in their factories.
    Burying your head in the sand and “pulling on the green jersey” as you advocate will never work.

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    Mute АЛЕКСАНДРЪ ХАИШ
    Favourite АЛЕКСАНДРЪ ХАИШ
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    Mar 4th 2013, 5:47 PM

    Completely agree with you on this one, Dave!

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    Mute sid
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    Mar 4th 2013, 1:07 PM

    @ dodge

    I figure its a very big deal , nobody has any idea where what horses were used, could have used anything to bolster up the weight

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    Mute АЛЕКСАНДРЪ ХАИШ
    Favourite АЛЕКСАНДРЪ ХАИШ
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    Mar 4th 2013, 5:21 PM

    “FSAI” IS STILL WORKING ON CONTAMINATED MEAT PRODUCTS ???, WHILE THERE IS POISONOUS MILK AND DAIRY PRODUCTS RAPIDLY SPREAD ACROSS IRELAND! Disgrace!

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