Budget 2021 has been announced and there’s a lot to unpack.
A package of €17.7 billion, it is the largest in the history of the state.
The main highlights are:
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Health
- €4 billion has been announced for the Department of Health to deliver more than 1,100 acute beds, an increase in ICU capacity and 1,250 community beds.
Housing
- Housing is getting an additional €773 million.
- The government has pledged €500 million to build 9,500 new social housing units in 2021.
Education
- The Department of Education to receive €8.9 billion, €2 billion of this to support children with special needs.
- Over 300 new mainstream teaching posts will decrease pupil-teacher rations in primary schools from 26:1 to 25:1.
- The SUSI fee grant for postgraduate study is being increased by €1,500 to €3,500.
Hospitality
- The VAT rate for the hospitality sector is being lowered from 13.5% to 9%.
Carbon Tax
- The carbon tax has gone up by €7.50 a tonne and will increase incrementally every year up until 2029.
- Changes to motor tax and VRT will also increase bills for those with high polluting cars.
Businesses
- Businesses forced to closes at level 3 restrictions or higher will receive weekly rebates of up to €5000.
COVID
- The COVID-19 Pandemic Unemployment Payment and Employment Wage Support Scheme will be extended to April 1st 2021.
- Self-employed people earning up to €120 a week will be allowed claim the Covid-19 welfare payment
Tax
- Cigarettes will increase by 50c while other tobacco products will increase pro-rata; the most popular packs of cigarettes will now cost €14.
- Alcohol has been left untouched.
Entertainment
- €50 million will be put aside for the live entertainment industry in a fund.
Travel
- €10 million announced to address issues faced by Shannon and Cork Airports.
- Transition to ‘green’ public transport is getting an additional €1 billion in 2021.
State Pension
- The eligible age for the state pension was due to increase from 66 to 67 on January 1st, but has now been postponed.
