Budget 2025: ‘Common good at its core’
The dust has settled on Budget 2025 following its announcement on Tuesday but information had been leaking since the weekend.
This was criticised by some like Labour TD Ged Nash who said the coalition where showing “utter disrespect” to the Dáil by doing this.
While most decisions will kick in by January, other changes like those to carbon tax will take effect on 9 October. The rate per tonne of carbon dioxide emitted for petrol and diesel will go up from €56 to €63.50. For other fuels, the rate increase will take place in May 2025, after the winter home-heating season.
Finance Minister Jack Chambers was first up to officially announce some of what’s in Budget 2025 which was packed with one-off measures and some tax cuts.
He said: “The focus of the personal income tax package in this Budget is to support low and middle income earners, by building on the progress already made during this Government’s term, specifically in relation to increases to tax credits and USC reductions. Therefore, I am announcing a personal income tax package of €1.6 billion.
“I am increasing the main tax credits, the Personal, Employee and Earned Income Credits, by €125. I am increasing the Standard Rate Cut Off Point by €2,000 to €44,000, with proportionate increases for married couples and civil partners. Turning to the USC, I am reducing the 4% rate to 3%. This represents the second consecutive reduction to this rate.”
Meanwhile, the national minimum wage will increase by €0.80 per hour to €13.50.
Retail Excellence Ireland (REI), the largest representative body for the retail industry in Ireland, described the rise “as a major blow to businesses”.
Jean McCabe, CEO of REI, said: “There is more than enough money in the State coffers for the Government to provide the retail industry with much-needed supports to alleviate some of the many punishing costs of doing business that companies are facing at present.”
The 9% reduced VAT rate for gas and electricity will be extended for another six months to 30 April. Another cost of living measure is to reduce student contribution fees by €1,000, and there will be once-off reduction of 30% in the contribution fee for apprenticeships and higher education.
As for social welfare, there will be €12 added to weekly social welfare payments while long-term welfare recipients are to receive a double payment in October as well as the Christmas bonus.
Stamp duty on bulk buying of houses is to rise from 10% to 15% while stamp duty for homes worth more than €1.5 million is rising to 6%.
Minister Chambers said Budget 2025 is one that has the “common good at its core”.
He said: “It allows us to ensure that we keep striving to provide better services and infrastructure for everyone, to build better communities and support social enterprise, to provide for those most in need, to ensure our indigenous businesses can grow and prosper and remain a highly attractive and competitive place for international investment and business.”
During his speech, Public Expenditure, NDP Delivery and Reform Minister Paschal Donohoe said: “The Budget sets out a positive path for the future while striving to meet the needs of today. It is a Budget for an Ireland with a growing population, full employment, public finances in surplus and public services expanding to meet our country’s needs. This positive position is the result of a balanced and planned approach to stewarding our economy and the hard work of the Irish people.”
Main opposition party Sinn Féin was the first to speak in the Dáil following speeches from ministers Chambers and Donohue. Deputy Pearse Doherty was of the opinion that this Budget won’t address the housing crisis or fix the health system.
The party’s finance spokesperson dubbed this budget as ‘spin’ adding that it treated people with contempt.