Government expects €1bn extra to spend

The Government expects an extra €1bn will be available to spend on services and tax cuts next year but is prepared to scale back growth projections if Britain votes to leave the EU.

Commitments are still in place to phase out the universal social charge over the next five years, Finance Minister Michael Noonan said, although reductions will be clawed back for higher earners.

A “rainy day fund” to help any volatility in the economy of around €1bn a year will also be made available to use every year between 2019 and 2021, the Cabinet agreed.