One-off measures in Budget 2024 'won't be as big as last year', says Taoiseach
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It would not be “prudent” to introduce as many one-off measures in the upcoming budget as last year, Taoiseach Leo Varadkar has said.
Speaking to reporters in Leixlip, Mr Varadkar said while the Government would still introduce a package of once-off supports, it would not be as large a package as was seen in Budget 2023.
“What won't be as big as last year is the one-off measures, for reasons that I’ve outlined. Inflation is moderating, average pay is rising and we have to start pulling in those one-off measures,” Mr Varadkar said.
“It wouldn’t be prudent to have one-off measures this year on the scale that we had last year.
“But we will have some and that money will be in people’s pockets before Christmas.”
The Taoiseach added that the welfare package in the upcoming budget would be “similar” to Budget 2023, adding that Finance Minister Michael McGrath is yet to provide proposals to Government on the overall tax package.
“It will be a good budget, there’ll be a tax package to help working people, there’ll be a welfare package as well and pension increases and also some further government measures to help the cost-of-living for people,” Mr Varadkar said.
Welfare supports currently being considered include a €15 increase in payments to pensioners, carers and people with disabilities.
Proposals within the tax package include a potential cut to the Universal Social Charge (USC), changes to the higher rate of income tax, and increases to the renters' tax credit. It is understood that proposals are being considered to change the tax treatment of landlords.
Mr Varadkar added that, due to inflation, more funds allocated in the budget will go towards providing and running public services, like hospitals and schools.
On a new public sector pay deal, Mr Varadkar hoped that further talks on pay increases for workers could be done over the course of October and November.
While public sector workers will receive a pay increase on October 1, Mr Varadkar said that he expected unions would want a further rise, taking into account inflation.
“I don’t think we’ll have it done by Budget day. I certainly hope it can be done over the course of October and November because hard-working public servants, teachers, nurses, local authority workers, Gardaí, wlll want to see a pay increase in the new year.”