Beginning of the end for austerity

The next three budgets will deliver an easing of crippling taxes on the "squeezed middle", according to Finance Minister Michael Noonan, who heralded the beginning of the end of austerity with a €1bn budget spree.

Mr Noonan said the burden would begin to be lifted for those worst hit by seven years of cutbacks, during which over €30bn was taken out of the economy.

Critics claimed that what the Government gave with one hand it was effectively taking away with the other through the looming water charges.