Michael Noonan says tax cuts may be paid for by extra levies

Michael Noonan has signalled he intends to give tax cuts with one hand and take extra levies back with the other in the upcoming budget.

The minister for finance indicated he wanted to ease marginal income tax rates, but warned financial pain could be ratcheted-up in other areas.

With six weeks to go until the budget, the minister said the improving tax take meant the planned €2bn adjustment could be achieved with minimal spending cuts, while he would aim to help low and middle income earners.