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LABOUR’S BUDGET 2025
Building better together means the security of an aordable place to call home. A tax
system where those who have the most are asked to contribute more. An education
system that is free and open to all. A health system t for a rich republic. Childcare
that’s aordable, available and that nurtures our children and respects skilled workers.
Cutting energy prices by doing what it takes to generate renewable energy, slash
emissions, and create the good jobs of the future.
The Irish people deserve better than the FG & FF duopoly’s “Sure, it’ll be grand”
approach to running the country. The status quo will change nothing.
Funding Labour’s Budget Package
In truth, this government’s reputation for sound scal management is undeserved.
Their self-imposed 5% spending rule has been honoured more in the breach than in the
observance. This is not an academic point. According to the Irish Fiscal Advisory Council
watchdog, the government’s actions have added €1,000 to yearly household costs.
A government that last year passed a Budget for a health service that they knew was a
work of ction, is not entitled to the trust of the people.
While ination is coming down, the price of energy, the shopping, rent, childcare and
your mortgage is much higher than 2021. Average prices have increased by 21 percent
over the last four years. While the real value of wages is bouncing back, low- and
middle-income households are still stretched and will continue to require additional
support in the short-term. That support should be targeted and not add to ination.
When ination balloons, it’s those who can least aord it who shoulder the greatest
burden of higher prices.
Labour’s package for Budget 2025 includes 4.5% indexation of personal income tax
bands (to track wage growth) and rates and credits (including USC rates) at a total
cost of approximately €1bn. Allied with this, we have provided €1.5bn for signicant
increases of €20 per week to core social welfare payments.
As proposed by Labour in the Finance Bill 2024, in government Labour would provide
for automatic annual indexation of tax and social welfare rates. This is the right
approach to take to provide certainty for workers and society into the future, and it is
common in other wealthy European States.
Labour’s Budget includes a net, once-o Cost of Living package of €2.8bn, and in line
with our proposals last year, Labour is proposing an additional increase of €6.2bn in
new current expenditure in this year’s Budget, oset by €3bn in net revenue raising
measures. On the capital side, we would invest a further €2bn, noting the government
already plans to increase the NDP by €1.7bn on Budget Day, and Labour focuses our
increases principally in, social and aordable housing, education, health, retrotting and
public transport to help Ireland meet its climate targets.
In simple terms, Labour would add a total of €5bn in spending in addition to what
the government will allocate for next year, though it is unclear how they intend to