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The Government has announced a budget with a \u20ac1.2bn fund to help absorb the impact of a no-deal Brexit.<\/p>\nThe Government has announced a budget with a \u20ac1.2bn fund to help absorb the impact of a no-deal Brexit.<\/p>\n
The package includes \u20ac650m to support the agri-food and tourism sectors.<\/p>\n
There will also be \u20ac200m made available to government departments to increase staffing levels and upgrade airports and ports.<\/p>\n
Finance Minister Paschal Donohoe said the budget was \u201cwithout precedent\u201d.<\/p>\n
\u201cThis is a budget developed in the shadow of Brexit and the context for Brexit has shifted to no deal as our central assumption, this does not mean no deal is inevitable, but equally we stand ready if it does happen,\u201d he told the D\u00e1il.<\/p>\n
\u201cIn preparing for no deal we can ensure the Government has the necessary resources to meet the impact of Brexit, keeping our public finances on the credible path they have been on since 2011.<\/p>\n
\u201cWe must increase the level and range of supports to ensure our economy is protected and this is why we are announcing over \u20ac1.2bn, excluding EU funding, to respond to Brexit.\u201d<\/p>\n
The spending plan is based on the anticipated gloomy financial outlook if the UK leaves with EU without an agreement on October 31.<\/p>\n
\u201cA no deal is unpredictable,\u201d said the minister.<\/p>\n
\u201cIt will impact different sectors in different ways.<\/p>\n
\u201cOur response will demand flexibility.\u201d<\/p>\n
The budget also included measures to tackle climate change, including a \u20ac6 per tonne hike in carbon tax.<\/p>\n
As part of the Brexit pot, \u20ac365m is also being provided for extra Social Protection expenditure linked to a no-deal, while \u20ac45m will provide increased supports for workers in adversely affected parts of the country, such as the border region.<\/p>\n
On climate change, Mr Donohoe described it as the \u201cdefining challenge of our generation\u201d.<\/p>\n
He said carbon tax would be increased from \u20ac20 to \u20ac80 per tonne by 2030, raising an additional \u20ac6bn.<\/p>\n
It will be raised by \u20ac6 from midnight tonight, raising \u20ac90m in 2020, and will be ringfenced to fund new climate action measures.<\/p>\n
The move will see the price of petrol and diesel rise at midnight with the cost of home heating fuel increasing in May next year.<\/p>\n
Part of the funding will be spent helping communities involved in the extraction of peat in the Midlands, as the Government tries to move away from reliance on fossil fuels.<\/p>\n
The price of a packet of 20 cigarettes is to go up by 50c from midnight.<\/p>\n
The social welfare package will increase by \u20ac690m next year.<\/p>\n
The help-to-buy scheme has been extended in its current form for another two years to the end of 2021.<\/p>\n
To date, some 15,000 new homes have been purchased or built by first-time buyers under the scheme.<\/p>\n
Mr Donohoe said a further \u20ac20m will be spent on homeless services which will bring the total funding to \u20ac166m in 2020.<\/p>\n
He said this will support people in emergency accommodation and increase preventative measures, long-term support and day services.<\/p>\n
A further \u20ac1.1bn of capital funding will be allocated to social housing to support the building of over 11,000 new social homes next year.<\/p>\n
Mr Donohoe said that 12,000 units will be \u201cdelivered\u201d in 2021.<\/p>\n
An additional \u20ac80m will go to the Housing Assistance Payment scheme.<\/p>\n
The department of Children will be allocated an additional \u20ac94m in 2020.<\/p>\n
The allocation for Tusla, the child and family agency, will be over \u20ac184m to support the reduction of the number of children to social worker ratio, and address cost pressures in private residential and foster care.<\/p>\n
An Garda S\u00edoch\u00e1na will see its budget increased by \u20ac81m in 2020, a 4.7% increase.<\/p>\n
This will deliver up to 700 new Garda recruits, and extra civilian staff to allow for more frontline policing.<\/p>\n
Health expenditure is set to increase by 6.3% to \u20ac17.4bn next year.<\/p>\n
The income threshold for access to free health care through a medical card will increase by \u20ac50 for one person or \u20ac150 for a couple. This will benefit up to 56,000 people.<\/p>\n
Free GP care is to be expanded to children under the age of eight and free dental care for children under the age of six.<\/p>\n
Fuel allowance will increase by \u20ac2 a week.<\/p>\n
Mr Donohoe said he could not commit to widespread tax cuts.<\/p>\n
\u201cTurning to our taxation system, I will not commit to across-the-board personal tax cuts at this time of economic uncertainty as to do so could potentially undermine the sustainability of our public finances,\u201d he said.<\/p>\n
\u201cThe unfunded tax cut of today is the unwelcome tax increase of tomorrow.\u201d<\/p>\n
Mr Donohoe confirmed the payment of a 100% Christmas bonus to all social welfare recipients in 2019.<\/p>\n
The Living Alone allowance will increase by \u20ac5 while the One Parent Family payment will go up by \u20ac15.<\/p>\n
\u201cThe social welfare allocation I am announcing today is more moderate and targeted,\u201d Mr Donohoe said.<\/p>\n
He said he was providing \u20ac13m for the Warmer Homes scheme to provide free energy efficiency upgrades to households deemed to be or at risk of energy poverty.<\/p>\n
Concluding his budget speech, Mr Donohoe said: \u201cBrexit is a great challenge. But our country will grow and our economy will develop.<\/p>\n
\u201cBudget 2020 aims to make progress on much, at a time of risk, but also at a time of opportunity.<\/p>\n
\u201cIt aims to further improve our national finances while the demands on public spending are so many.<\/p>\n
\u201cIt marks a necessary step in our response to climate change while conscious of the needs and difficulties that this step creates.<\/p>\n
\u201cAnd it does all this while continuing to get our economy ready for Brexit.\u201d<\/p>\n