Income tax ‘could rise by 3%’ in the budget

A TOP adviser to Finance Minister Brian Lenihan said there is “scope” to increase income-related taxes by about 3% for every worker in the country.

Jim O’Leary told a pre-budget conference in Dublin that “we are into tax increase mode” as the Government prepares to present the European Commission with a four-year plan to reduce the huge gap in public finances.

He also said there would be “serious further erosion” of the country’s control over budgetary matters under the EU’s plans to scrutinise the spending of member states.