Budget 2023 is ‘most generous’ of Limerick TD’s 40-year Dáil stint

EXTRA child benefit payments, social welfare allowances and €600 in energy credits.

Just three features of next year’s national budget which has been described as “the most generous” of his 40 years in Dáil Eireann by local TD Willie O’Dea and includes €11bn of spend.

Finance Minister Paschal Donohoe and Public Expenditure Minister Michael McGrath unveiled their estimates for 2023 this Tuesday, with the budget framed squarely around the cost-of-living crisis.

Minister of State and Limerick TD Niall Collins hailed the budget, saying: "Government has delivered on its commitment to support workers, communities, businesses, students and farmers.”

There will be no increase in the cost at the pumps of petrol and diesel, while the lower VAT rate on energy will also remain until February.

There will be a €12 per week increase for every recipient of a social protection payment.

The Christmas bonus will be paid in full as normal, while there will also be once-off payments to other recipients of social welfare next month.

'Petrol, pensions and pints ' - What does Budget 2023 mean for your pocket?

In a boost for the hospitality sector, cost of a the special exemption order for a late bar will halve from €110 down to €55.

But as is now the norm at budget-time, the price of a packet of cigarettes is up again, by 50c.

Another crisis of our time is the housing, or lack of it across the country.

In a bid to ease this, Mr Donohoe announced a vacant homes levy to incentive the supply of accommodation. This tax will apply at a rate of three times the local property tax rare which applies to the dwelling.

It will apply to residential properties occupied for less than 30 days in a 12 month period, but local Sinn Fein Senator Paul Gavan described it as a “fig leaf”.

“It’s not a serious tax. Not just because it’s down to self-assessment. It’ll be easy for people to demonstrate they are there 30 days and not have to pay the tax,” he said.

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Elsewhere in housing, taxpayers paying rent on their principal private residence will receive a new rent tax credit valued at €500 per year from 2023 - it may also be claimed in respect of rent paid in 2022.

Mr Donohoe announced the increase of the second USC rate band from €21,295 to €22,290 in a move which will keep those on the minimum wage out of the top rate.

He said while a third rate of income tax is not being introduced in Budget 2023, it may be in future years.

The education sector has received a boost, with free schoolbooks being made available to all primary school children, and a cut in the pupil-teacher ratio to 23 to one.

There will be an extra 686 special educational needs teachers, and 1,194 special needs assistants posts.

In health, €443m is being invested to help cut waiting lists, while GP care will become available to 4,000 more people.

Mental health spend will rise to €58m.

Free contraception will be made available for women up to 30 years, while the VAT rate on hormone replacement and nicotine replacement therapies will be cut from nine per cent down to zero. VAT will no longer be levied on defibrillator devices.

In a move which will provide a boost to Limerick’s Troy Studios, the film tax credit is to be extended to 2028.

The VAT rate on newspapers has been cut from nine percent down to zero from the New Year.

It comes as part of a temporary funding package of €90m being made available in the tourism, culture, arts and Gaeltacht communities.

Some 6,000 extra gardai will be appointed. There will be a 10% levy on concrete products to help pay for both the mica and pyrite redress schemes.

In a move criticised by opposition parties, there was no windfall tax proposed on energy companies – with Mr Donohoe indicating it could be looked at in the future.

“It isn’t fair for some companies to earn excess profit from the current volatility in the energy market while so many other companies are suffering. Ireland aims to be part of an EU-wide response to high prices. If this is not possible, government will bring forward its own measures,” he told the Dail.

Ireland’s cherished Corporation Tax is staying at 12.5%, but the Finance Minister did warn of the over-reliance on 10 big employers accounting for one-third of the tax-take in this area.

Public transport fares in Ireland will be kept at 20% lower until the end of next year.