Coalition urged to reveal plans for tax hikes

Ministers have been accused of preparing for election pledge-busting income tax hikes and welfare cuts as a battle erupted within the Coalition over whether top earners should bear more of the brunt of budget cuts.

Transport Minister Leo Varadkar warned that the Government did not know “where we will be” at the December budget as, said Labour’s Pat Rabbitte, the situation was so difficult “no red lines” could be drawn.

The gloomy interventions were in marked contrast to pledges at the same point in the budget cycle last year that income tax and headline welfare payments would be protected.