Cuts in income tax ruled out in Budget 2020 by Paschal Donohoe

Minister for Finance has confirmed he will prepare the budget for a no-deal Brexit

Minister for Finance Paschal Donohoe said that increases to social welfare payments would be “targeted” at the most vulnerable. Photograph: Gareth Chaney/Collins

Minister for Finance Paschal Donohoe said that increases to social welfare payments would be “targeted” at the most vulnerable. Photograph: Gareth Chaney/Collins

 

Minister for Finance Paschal Donohoe has ruled out any cuts in personal tax in the budget.

Mr Donohoe has confirmed he will prepare the budget for a no-deal Brexit.

He said there will be “minimal” changes to the tax code, and ruled out cuts to income and personal taxes.

“I am not going to do that,” he said.

He also said that increases to social welfare payments would be “targeted” at the most vulnerable.

Social welfare packages will be different from previous years, he added. Mr Donohoe did not, however, confirm if this meant that across the board increases, such as an extra €5 for all welfare recipients, are off the table.

“There are many who would argue, given other issues and pressures that we have to deal with and given the fact that we have an economy that’s still growing and is doing so well, that there is a case and a need to make further personal tax reductions before Brexit,” Mr Donohoe said.

“I’m not going to do that, I am going to make a set of very safe choices in relation to taxation.”

He added: “For example, I will have to make changes in our personal tax code to deal with a potential change in the minimum wage. They are the kind of changes I want to ensure that I make but my priority is going to be making our national finances as robust as possible.

“I am confirming that the changes in personal taxation will be minimal and they will be focused.

“The social welfare plan for this year will be targeted. I am going to have to work through all of that now with my Cabinet colleagues and with Fianna Fáil in the coming weeks.”

He said it is “too early” to say if across the board welfare increases will not be introduced on Budget day on October 8th.

He has been outlining his plans at a briefing at Government Buildings on Wednesday afternoon following an earlier Cabinet meeting.