Budget 2024: What the Government's spending plans mean for Irish families in a cost of living crisis

Michael McGrath has unleashed a massive €14billion budget that the Government hopes will win the electorate over ahead of the next general election as it contains a range of measures that appear to benefit everyone.

But it was slammed last night as a Reeling in the Years budget which brings nothing new according to Labour finance spokesman, Ged Nash.

And as an attempt to do "a Goldilocks budget" by EY chief economist, Dr Loretta O’Sullivan, who is concerned it tries to spread resources too thin, "not too hot, not too cold."

The Finance Minister’s package includes a wide range of one-off bonanza payments ahead of Christmas, increases in pensions and welfare weekly rates and tax cashbacks for both renters and landlords.

It also seeks to address the cost-of-living crisis directly with things like a return of the energy credits, worth €450 in three instalments this year, mortgage interest relief as the banks continue to pile on the pressure and a slashing of college fees by up to €1,500 per student.

The budget has tweaked the tax bands and credits with, for example, the 4.5 per cent USC rate going down to 4 per cent, the higher tax rate threshold rising to €42,000 and new personal credits worth €100.

All in all, the tax changes will see average earners pay about €800 less in 2024, which is unlikely to keep pace with the rising cost of living.

The minimum wage has gone up too, as recommended by the Low Pay Commission, which would see an average weekly wage packet up over €50 a week.

Another of the eye-catching budget promises this year is a 25 per cent childcare costs reduction for parents, which, added to last year’s move, brings costs down by 50 per cent in two years.

The total savings in two years could be up to €3,000 in a full year for some parents when this kicks in next September.

Mr McGrath also announced details of two new funds where windfall taxes can be sent.

The first is called the Future Ireland Fund and is expected to grow to as much as €100billion by the middle of the next decade.

Separately, there will be €14billion put into the new Infrastructure, Climate and Nature Fund by 2030, which will essentially do exactly what it says on the tin.

However, the budget was met with anger and disappointment from the Opposition and interest groups last night.

Sinn Fein’s finance spokesman Pearse Doherty said the "daftest move" in this "or any other budget" is a tax incentive for landlords.

He said: "Why does a nurse now pay more than a landlord?"

Mr Doherty slammed the government for "doing nothing" to help tackle the homelessness and housing crisis which he pointed out currently sees over 4,000 children homeless tonight.
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