Published: Tue, October 10, 2017
Medicine | By Megan Pierce

Budget 2018: All You Need To Know

Budget 2018: All You Need To Know

Paschal Donohoe delivers his first budget as finance minister today and is expected to signal his intention to widen tax bands over the lifetime of the government to ease the burden on squeezed middle-income workers.

Most welfare payments will be increased...

He said 3,800 new social houses will be built next year by the local authorities and Approved Housing Bodies.

Martin Conway says such a programme would allow counties like Clare to put forward projects aimed at developing a year-round tourism trade.

In Education, €10bn is being spent on services, a move which is anticipated to bring the teacher-pupil ratio down to 26:1. This year, social welfare recipients can look forward to a Christmas bonus of 85%, the Minister has announced.

A new entity, Home Building Finance Ireland (HBFI), will be created with €750 million from the Ireland Strategic Investment Fund being allocated for commercial investment in housing through this. "The 12.5% tax rate is, and will remain, a core part of our offering".

Threshold for the family income supplement will rise by €10 (£8.94) per week for families with three children.

There will be marginal tweaks to the USC rates, with the 2.5% rate of USC being cut to 2%, worth in the region of €33 a year, and the 5% rate to 4.75%, worth around €47 to someone earning the average salary.

He has also declared war on vacant site owners, with the levy on this doubling from 3% to 7% by 2020.

Taoiseach Leo Varadkar had already billed it as being worth €500-600 a year. A new 2% rate will kick in at €19,372, up from €18,772, so minimum wage workers will not pay the upper rates.

The Earned Income Credit for the self-employed will be increased by €200 to bring it to €1,150 a year from 2018.

There will be no savings in PRSI or income tax.

The home carer tax credit is to increase by €100 (£89) this year to €1,200 (£1,073) per year. "Let us resolve to do this differently now".

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