IBEC: Govt must cut public spending

IBEC has said the disappointing October exchequer returns are a reminder of the need for urgent measures to reduce public expenditure.

The figures released today have confirmed a €2bn shortfall in taxes coming into Government.

IBEC's senior economist Fergal O’Brien said: "Tax revenues in October were again weaker than expected, and the pace of decline accelerated from that recorded in September.

"Tax receipts in the month were 20% lower than in October of last year - while the year-to-date receipts are now down almost 17%. The worsening trend is largely due to weakness in income taxes.

"This is particularly worrying in advance of the important November self-assessment returns. Unfortunately, we suspect that the tax revenue situation will be even further below forecasts once the details of these are available.

"The latest figures are a reminder that no time can be lost in the introduction of substantive measures to control the public expenditure position."