James Reilly indicates Government may reduce income tax

Minister for Children Dr James Reilly has indicated that income tax reductions and job creation will be at the heart of the Government's spring statement.

The statement will include updated figures and targets for the economy and employment.

The Coalition is considering using its spring economic statement to outline a five-year tax reform plan, as the Government begins its efforts to try and secure a second term in office.

It is not yet clear what specific reforms a five-year plan could entail, although TDs from the Coalition parties have made repeated calls for reform of the universal social charge (USC).

“The Taoiseach indicated that, in the spring, he may take advantage of a statement to outline [how], over the next five years, this Government will continue to support the recovery and make work more valuable for parents, families and everyone who’s in the workforce,” Dr Reilly said.

Dr Reilly also said that the Government are committed to achieving full employment by 2018.

Taoiseach Enda Kenny and Tánaiste Joan Burton announced on Wednesday that the Coalition has brought forward its target for achieving full employment by two years, from 2020 to 2018.

Dr Reilly said the details of the spring statement have yet to be finalised.

"The details of that are by no means set at this moment in time. [The details] still have to be discussed by Cabinet and internally by different ministers in different departments and then we'll come [forward] with something more comprehensive and informative in the spring," he said.

Minister denies tension

Dr Reilly denied there were tensions between Fine Gael and Labour about proposed cuts to income tax, and said that the focus was on job creation.

“Jobs is where it’s all at . . . I really think it’s important to emphasise that every job we create means another of our citizens is now financially independent, their families are independent and their communities have more money circulating in them.”

“It also allows us to make work more valuable by having focused tax reductions , so rather than putting wages up, we make work more valuable by ensuring that the worker takes home more pay.”