The Finance Minister has announced a ‘Brexit budget’ with an overall spending package of €2.9bn.
Here are some of the key points from Paschal Donohoe’s Budget 2020 announcement.
- A €1.2bn fund to protect the country against a no-deal Brexit – excluding any EU funding.
- €650 million will be provided for agriculture, enterprise and tourism (€220m to be deployed the moment the UK crashes out). This includes €85m for beef farmers and €14m for fisheries.
- €110 million to help “vulnerable but viable firms.” This includes a €45m transition fund and a €42m rescue and restructuring fund.
- Carbon tax to increase by €6 per tonne for the first time since its introduction.
- It will see the price of petrol and diesel increasing by 2c per litre from midnight tonight.
- The government has pledged to ringfence the funding for environmental projects and a just transition.
- They will also be used to protect people living and working in the midlands.
- The Help-to-Buy scheme has been extended for another year – with no change to €600,000 cap on eligible properties.
- There will be €1.1bn in funding to support the construction of 11,000 new social homes next year.
- €80m has been set aside for Housing Assistance Payment funds.
- An extra €20m in funding for homeless services.
- €2m for the Residential Tenancies Board to enforce Rent Pressure Zone legislation.
- The Department of Health is set to overspend its budget by €335m this year.
- Health spending is to increases 6.3% to €17.4bn next year – a new record.
- That includes an extra €25 million for the National Treatment Purchase Fund.
- Prescription charges reduced by 50c.
- Free GP care expanded.
- More medical cards for people over the age of 70.
- New tax measures to raise €300m.
- No ‘across the board’ tax cuts.
- 5% rise in Commercial Stamp Duty.
- Increase in the Research and Development tax from 25% to 30%.
- Earned Income Credit for self-employed to rise by €150 to €1,500.
- €100 increase in the Home Carer Credit
- Increase in Inheritance Tax Threshold from from €320,000 to €335,000.
- Free GP care to be extended to all children under the age of eight from next September.
- Free dental care for children under six to be extended from the same date.
- 50c increase in the price of a packet of cigarettes – with the price of other tobacco products rising on a pro-rata basis.
- It means your pack of 20 will cost around €13.50.
- €54m increase in spending on childcare.
- €3 increase in the Qualified Child Payment for over-twelves and €2 for under-twelves.
- Extra budget of €81m to fund recruitment of 700 new Gardaí.
- €32 increase in funding for the Defence Forces.
Sample Budget Scenarios