If people weren’t talking about a winter general election now, they most certainly are now.
While this year’s Budget isn’t quite the massive “Toy Show Budget” that we got in 2005, this year’s Budget can be interpreted as something of a giveaway one; there is something for everyone in the audience.
A double social welfare payment in October (on top of the Christmas bonus), a cut to the Universal Social Charge, an increase of 80c to the minimum wage, 9% VAT on electricity and gas being extended until next April, an extra €250 added to the rent tax credit, and two energy credits of €125 are among the highlights.
In terms of taxes, everyone’s favourite topic, a new tax will be introduced on vaping from the middle of 2025 (50c per ml of liquid will now be taxed), the price for a pack of smokes has gone up to €18, there will now be a 6% stamp duty tax on properties over €1.5 million, Universal Social Charge is being cut from 4% to 3% for certain taxpayers and Capital Acquisition Tax thresholds to increase from €335,000 to €400,000.
The VAT rate for the hospitality will remain at 13.5% despite calls to reduce it from business owners.
Housing, likely to become the number one topic in the general election just like 2020, was thrown a bone in the form of €2 billion in funding being announced for the building of 10,000 new social homes.
In what may be the final year of the Greens influencing the budget, the Carbon Tax is being increased by €7.50 per tonne, making for an annual revenue stream of €951m.
The rate per tonne of carbon dioxide emitted by petrol and diesel vehicles will increase from €56 to €63.50 from October 9th.
Free public transport will now be available for children under nine, and the popular 90-minute Leap card offer as well as discounted public transport for 19-25 year olds will remain in place for commuters.
The proposed “baby boost”will see parents receive a one-off €420 payment as well as general increases to maternal and parental leave benefits.
For the third year in a row, cost of living crisis measures dominated the budget.
The social welfare rate will be increased by a further €12 a week, while in November, a one-off €400 payment will be made to those who receive the Carers Support Grant, Disability Allowance, the Blind Pension, Invalidity Pension and the Domiciliary Care Allowance.
Fianna Fáil Senator Mary Fitzpatrick has said this year’s Budget, which was delivered by Dublin West man Jack Chambers, “will deliver targeted supports to people, families and businesses to alleviate pressures caused by the increased cost of living.”
“In Budget 2025 we are implementing measures to protect the most vulnerable in society, give families and households a break, safeguard the economy and prepare for the future,” she said.
Fellow Dublin man Pascal Donohoe, in his role as Minister for Public Expenditure, said this year’s Budget is an example of why this government adheres to fiscal prudence, pointed to current global events as “why we must set aside some of our country’s money for the future”.
An 22% increase in capital investment will go towards the defence forces, bringing spending to €1.35 billion overall with 400 new defence force members to be added next year.
Sinn Féin’s Pearse Doherty referred to the Budget as “spin,” while Social Democrats TD Cian O’Callaghan said “this was a golden opportunity to begin the radical change that is needed to fix the housing crisis; instead, it contains a series of tokenistic half measures and one-off handouts.”
Labour MEP Aodhán Ó Ríordáin said “the government is making the same mistakes again,” saying that Ireland’s economic model of narrowing the tax base and increasing spending is “built on sand.”
Children’s charity Barnados broadly welcomed the Budget measures,saying “lump sum payments will enable parents to make larger once off payments that will be necessary this winter, help prevent or reduce financial hardships for many and better guarantee children don’t go without essentials. It will ease lower income families dealing with high prices for many essentials. However, it’s important to remember that they are again temporary.”
The Simon Communities of Ireland said “it is extraordinary that so much money could be expended and yet, so little done for those at the sharpest end of the housing crisis.”
People Before Profit TD Paul Murphy was more cutting in his remarks.
He said the Budget failed to take advantage of the Apple windfall, and remarked “in effect this government is sending the message to young people to emigrate and preferably before the general election – this is no country for young people”.