Cowen to budget with spending cuts rather than raised taxes

TAX rises are unlikely in December’s budget with Taoiseach Brian Cowen admitting his government will focus on spending cuts rather than further levies on workers to fill a €4 billion hole in the public finances.

He also signalled that a major overhaul of the taxation system as recommended in a report by the Commission on Taxation will happen in the longer term.

Property tax and water charges are among the recommendations in the 550-page report, which Mr Cowen said will be implemented over the coming years.