2.5 billion euro is being taken out of the economy through increased taxes and cuts in spending.
Ministers Michael Noonan and Brendan Howlin have delivered Budget 2014 this afternoon with measures to include Cheaper flights, dearer prescriptions, cigarettes and drink, but and no change to the price of eating out
However young people are to get reduced dole and older people will see their telephone allowance go.
Michael Noonan left motorists alone – there’s no hike in motor tax or the cost of filling up on petrol or diesel.
He also gave the tourism and hospitality sectors a boost – their lower 9% VAT rate will continue, meaning no hike in prices in restaurants or hairdressers.
Cheaper flights could be on the way from next year as he scraps the air travel tax – a move welcomed my management at Shannon airport this evening.
But Minister Noonan had to raise money too – smokers are hit with ten cent on a pack of twenty, 10 cent on beer, cider and spirits and 50 cent on a bottle of wine – all taking effect from midnight tonight
He also hit tax reliefs on medical insurance, and imposed a levy on banks.
Then it was Brendan Howlin’s turn – to announce cuts in government expenditure
– lower dole rates will apply to under 25’s – with a statement that young people should be in education or work.
– 113 million has tro be saved through a review of medical cards – that’s a sign more will be taken away, while an over 70’s couple earning more than 900 a week won’t qualify.
The telephone allowance is scrapped, the 850 euro bereavement grant will be discontinued from January 1
while all maternity benefits will be standardised at 230 a week.
Welfare sick pay won’t kick in for six days now, compared to the current 3
He did get to announce some good news – no increases in class sizes, extra resource teachers and that free gp visits for all children aged 5 and under.
