Budget will stimulate the economy- Burke

(Above) Minister of State Peter Burke.

Today's ambitious Budget will "stimulate our economy and ensure our public services are funded throughout this crisis," Minister of State Peter Burke says.

“I am happy to announce that I have secured a further €300 million for our SMES so that no commercial rates are now due for Q4. In July, I announced a rates waiver for Q2 and Q3 and €600 million to compensate our local authorities for the loss of this funding scheme. I can now announce a further €300 million for Local Authorities so that they can continue to provide key services unaffected by this loss of income.

Furthermore, there will be €192 million for our Local Authorities in 2021, an increase of €36 million year on year.

€266 million is being provided in Budget 2021 for planning which is made up of current expenditure of €52 million for An Board Pleanala, Ordinance Survey Ireland and the Office of the Planning Regulator. The Capital spend will be used for the LDA (€65 million) and the URDF (€150 million) which is tasked with the regeneration of our towns and cities.

Budget 2021 expected to include biggest ever investment in housing coming in at €3.3 billion. 12,750 new homes will be added to the stock of social housing of which 9,500 will be built. For first time buyers, the Help to Buy Scheme is being extended till December 2021 and the Rebuilding Ireland Home loan has been allocated €210 million”.

Other Sectors:

Health

In 2021, there will be a €4 billion increase in the health budget. Mental health services are being prioritised in this budget, which involves €38 million for new measures. €5 million will be given to community-based dementia support services. €50 million for new drugs and €25 million for Healthy Ireland policy and Drugs Strategy. This year the Government will deliver 1,146 acute beds, 1,250 community beds and 5 million additional homecare hours.

Education

In relation to the education sector, the pupil teacher ratio will be reduced to 25:1, creating 600 additional posts. A large increase to €9 billion total for Department of Education budget 2021. This includes €2 billion in investment for children with special needs - 990 new Special Needs Assistant posts will bring them to 18,000.

There will be a €50 million fund to assist third level students experiencing financial hardship in pandemic. The measure could be worth €250 to each student, details yet to be worked out.

There has been a post graduate grant hike to €3,500 & its qualifying income threshold will rise from €30,000 to €54,000. Additional funding secured to underpin new college places created this year into 2021.

Apprenticeship Scheme where employers get €3,000 to take on an apprentice set to be extended in Budget 2021.

There will be a total review of the SUSI grant system

Disability

100 million euro on Disability supports with a particular focus on 'Progressing Disability Services for Children and Young People' under the new Children's Disability Network

Hospitality

The VAT rate will be cut significantly from 13.5% to 9% to support the hospitality sector until the end of 2021, and the Wage Subsidy Scheme, which sees the State covering the wages of SMES, will be extended.

A new scheme has been announced for the entertainment sector, affecting businesses that have had to close in Level 3 or higher situations which will cover accommodation, food, arts, recreation and entertainment businesses. The Government will pay them based on their 2019 average weekly turn over. A max weekly payment of €5,000 will be made available, based on 10% total turnover.

Tax

The self-employed can now defer tax payment for one year without interest. The commitment to equalise the Earned Income Credit with the PAYE credit by raising it by €150 to €1,650 will be implemented.

Farm consolidation stamp duty relief is to be extended by two years to December 31st, 2022.

No increase in income tax, USC or PRSI. 5 weeks of paid parental benefit

Social Welfare

Christmas bonuses will be paid on to all usual recipients, and those on the Pandemic Unemployment Payment will receive the bonus if they are in receipt of the payment for more than four months at the start of December. It could see up to 90% of those currently receiving the PUP getting the double payment on December 7th.

€5 increase in qualified payment for children aged 12 and over and €2 per week for those under 12. 419,000 dependent children to get increase overall.

€5 increase for the living alone allowance, €3.50 fuel allowance to offset any increase from carbon tax, the carers support grant will increase by €150, you can receive illness benefit after 3 days (down from 7) and the self-employed can earn €120pw and keep PUP. There will be a €2000 increase in the Widowed or Surviving Civil Partner Grant; €6,000 to €8,000. The grant is a once-off payment to widows, widowers or surviving civil partners with dependent children. It is expected to rise from €6,000 to €8,000.

Increase in the pension age to 67 will not proceed as planned for next year.

Public Service

Budget to pave the way for the hiring of 600 new Gardaí and 500 Garda staff next year. There is also likely to be funding to quickly purchase 70 new Garda vehicles. An extra 500 staff will be supplied to ports for additional Brexit related checks next year.

“The government are spending a record amount of €24.5 billion on this budget, the largest budget ever seen in this country and eight times higher than last year. This is to stimulate our economy and ensure our public services are funded throughout this crisis."