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Budget aims to help 'most vulnerable' and the 'squeezed middle', says McGrath

Cabinet could decide next week to bring the Budget forward to the end of September.

LAST UPDATE | 1 Jul 2022

 

THIS YEAR’S BUDGET, which is expected to be held earlier than usual, will aim to help the “most vulnerable” and the “squeezed middle”, Public Expenditure Minister Michael McGrath told the Fianna Fáil parliamentary party meeting today.

Childcare, pension hikes, housing and public transport were all up for discussion at the special meeting on Budget 2023. 

McGrath told his party members that the budget, which could be held in September instead of October this year, will include a cost-of-living package that need to be “substantial” and “implemented quickly”. 

There will be an emphasis on public services, such as access to health, housing, education, childcare, disability services, older people, as well as a welfare and tax package. 

McGrath said the budget will deliver an “immediate tangible benefit for most vulnerable”. 

He said working families will see a tangible reduction in health and childcare costs, and there will be improvements in key public services.

Speaking to reporters after the meeting and reacting to the recent electricity and gas price hikes announced today, the Taoiseach said “there will be a package” to help alleviate costs for people. 

“By the time that increase comes in, the gap between that and the budget will be relatively short,” he said.

Government is working on the best way to alleviate the pressure on households in terms of their disposable income and in a way that doesn’t further exacerbate the inflationary realm, he said. 

He said he also wants to ensure that the money doesn’t go into the pockets of those that don’t need the dig out. 

One of the key objectives of Government is climate action and also reducing public transport costs. 

Housing formed a big discussion point at the meeting, with members raising the Central Bank mortgage lending rules, and calling for people that pay extortionate rent having that fed into the amount they could borrow.

“I think also we’re conscious that a lot of smaller landlords are exiting the market. We’ve got to address that,” said the Taoiseach.

mcGrath said earlier today that it is possible there will be a “modest change” in bringing the Budget forward.

McGrath said the Government is examining whether it is possible to bring forward the date of the Budget and a decision will be made by Cabinet next week.

He said it is being worked through and the process of moving the Budget date is “very much under way”, with it likely being brought forward to the end of September.

“No decision has been made by Government yet to change that date and the issue is under consideration, but I would say this, there is limited scope to change that because the process of putting together a Budget is a lengthy and complex process,” McGrath told RTE Morning Ireland.

“We are working through that at the moment and the process is very much under way.

“So Government will make a final decision and I anticipate that will happen next week.

“We are very conscious of the genuine cost-of-living pressures that people are under and we have said that there will be a need in the autumn for a set of one-off measures to help people in the best way that we can.

“So if it is possible to bring it forward by a short period of time, within the limits, then we are examining that issue at the moment, but no decision has been made, and any change would be modest in nature in terms of date.

“I don’t think it will be fair to speculate on any particular date when no decision has been made.

‘Bringing it forward’

“It is possible that there will be a modest change in terms of bringing it forward. But that’s not definite until Government makes a decision and they expect that will happen next week.”

McGrath said the measures to be announced as part of the Budget package will be targeted at those most impacted by the cost-of-living crisis.

He said it will involve one-off measures, adding they will be substantial in scale.

While he refused to give details on some of the proposed budgetary measures, he did not rule out including an electricity grant of €200.

It has been flagged previous that a further electricity credit might be on the cards, however it is understood that if it is rolled out, it could be more targeted that the the previous round in April.

“I would like to just set out three broad priorities. One is those who are genuinely the most vulnerable, they will need the most help at this time,” McGrath said.

“But people who are working, working families will also need help because they too are feeling real pressure at this time.

“They will want to see us as a Government move to reduce costs in areas like childcare, transport, health, and to reduce the tax burden that they face as well.

“I think the third key priority is public services. The relationship between the state and the citizen works on the basis that all citizens pay some tax to the Government, even if they’re not working, and in return they expect the state to deliver good services, access to housing, access to healthcare, good disability services, home care services.”

Summer Economic Statement

He said the summer economic statement will be brought to Government on Monday, which will set out the resources available for the Budget.

It comes as Fianna Fail members are to hold a special party meeting on Friday to discuss the Budget and measures to address the cost of living.

“It is a very good opportunity for myself and the other Fianna Fail ministers and our Taoiseach to listen to our colleagues across the parliamentary party,” the minister added.

“This will be a policy-focused discussion with an emphasis on the Budget as you would expect, and I believe that there will be a number of key priorities emerging from that meeting that are very much in line with my own views, the views of the Taoiseach and indeed the Government.”

With reporting by Christina Finn

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35 Comments
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    Mute Michael
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    Dec 6th 2013, 11:59 AM

    As long as they don’t go on strike over Xmas I don’t care as I’m flying home with them then. However they have lost me as a customer from now on as I’m sick and tired of strike threats I will fly with Etihad from now on.

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    Mute conventional
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    Dec 6th 2013, 12:09 PM

    Etihad? But Aer Lingus don’t fly to Abu Dhabi?

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    Mute Michael
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    Dec 6th 2013, 12:32 PM

    Code share, look it up, if you fly from the Middle East with Klm you get on Aer Lingus in Amsterdam

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    Mute Michael
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    Dec 6th 2013, 12:34 PM

    Unless of course their on strike

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    Mute conventional
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    Dec 6th 2013, 12:44 PM

    They’re

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    Mute Richard Keogh
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    Dec 6th 2013, 12:52 PM

    If DAA go on strike none of the airlines will be going anywhere, at least not from Dublin

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    Mute Aaron
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    Dec 6th 2013, 12:59 PM

    The usual pre-christmas strike action threat from the Shamrocks

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    Mute Michael
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    Dec 6th 2013, 2:04 PM

    Belfast

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    Mute Robert McGrath
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    Dec 6th 2013, 12:38 PM

    Another possible strike involving Aer Lingus? Do the staff ever work? Give me a job and I will work and I won’t even miss a day to be sick!

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    Mute rodrigo detriano
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    Dec 6th 2013, 12:50 PM

    The quicker this Aer Lingus crowd are completely privatised the better. Overpaid,underworked, jumped up malingerers. They should all be sent to work for Ryanair for a few months. There wouldn’t be a word out of them when they came back.

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    Mute Giuseppe
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    Dec 6th 2013, 2:07 PM

    It’s the DAA ye should be worried about if this strike goes ahead( which it won’t) Aer Lingus staff can’t shut the airport down…. All the Ryanair, easyjet flights won’t take off either then……

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    Mute 'Bull' Mick Daly
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    Dec 6th 2013, 3:29 PM

    There is no easyjet flights

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    Mute 'Bull' Mick Daly
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    Dec 6th 2013, 3:30 PM

    Rodrigo you’re a d1ckhead

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    Mute john smith
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    Dec 9th 2013, 5:36 PM

    Sounds like your new to town,workers have paid their own money into pensions ,some people which have 30yrs service,they will be lucky to see 20% of that!understand now?

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    Mute Rob
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    Dec 6th 2013, 1:31 PM

    I think we’ve all had quite enough of Trade Unions holding the country to ransom.

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    Mute Ross McNulty
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    Dec 6th 2013, 2:47 PM

    Explain.

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    Mute Michael McGrath
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    Dec 6th 2013, 12:05 PM

    Oh my goodness……how rare!!!

    22
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    Mute mr x
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    Dec 6th 2013, 1:04 PM

    Can someone please explain to me why in this age of employment law and measures in place to protect employees rights we need unions at all?
    Fat cat salaries for the elite union officials sends to be the only reason left.

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    Mute Jim Flavin
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    Dec 6th 2013, 4:42 PM

    Can someone please explain to me why in this age of employment law and measures in place to protect employees rights we need unions at all?”
    – how about static or declining wages – and conditions- – zero hour contracts.
    We have never needed Unions more – pity they became part of the Establishment – at least some did – but that can be changed .

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    Mute Jonathan McCoy
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    Dec 6th 2013, 1:23 PM

    I can’t understand why SIPTU has a problem with the separation of SNN from the DAA. Since the airport has went its own way there has been nothing but good news coming out of there regarding new routes and frequency increases on existing routes. This week alone Aer Lingus Regional announced the reintroduction of the route to Bristol and also the basing of a second aircraft at the airport which may lead to even more routes being introduced. Couple all that with new Ryanair routes and increases to transatlantic things seem to be going in the right direction.

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    Mute Kenneth
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    Dec 6th 2013, 12:00 PM

    Lockout please but wait until jan :)

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    Mute Hugh Chaloner
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    Dec 6th 2013, 2:08 PM

    Big Jim is turning in his grave at union fatcats who are now self serving as opposed to serving their members.

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    Mute tony keely
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    Dec 6th 2013, 3:34 PM

    What the feck do unions know about whats good for a business, they commented on the separation last week…….it happened weeks ago……someone must have disturbed their hibernation…go back to sleep you moron…..

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    Mute Robbie
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    Dec 6th 2013, 2:09 PM

    It’s worth remembering when people are condemning ESB workers for defending their pensions that the DAA and Aer Lingus denied any future short fall in the pension fund only a few short years ago. The airports won’t close because SIPTU will not allow it to happen. Unfortunately the employers and the government know this so how effective this ballot will be is questionable.

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