Government to cut spending immediately

THE GOVERNMENT is expected to cut spending immediately after warnings that the country is plunging into a recession, but does not expect to make changes to the tax regime until December’s budget.

Finance Minister Brian Lenihan vowed to take “prudent and resolute action” to deal with problems facing the economy after warnings contained in a report by the economic think-tank, the ESRI.

Mr Lenihan could not confirm precisely what action would be taken, saying he would make a decision after next Wednesday’s half-year revenue receipts become available.