Welfare cuts on cards under bailout targets

THE Government faces having to cut social welfare as part of a range of tough targets that must be included in December’s budget.

The updated memorandum of understanding with the EU and IMF, published yesterday, sets out measures such as social welfare cuts and mechanisms to raise more taxes — including a lowering of personal income tax bands and credits.

The EU and IMF believe €1.5 billion will be raised from higher taxation, and €2.1bn from spending cuts.