Michael Noonan rules out hopes of big cuts to USC

Finance Minister Michael Noonan has ruled out any dramatic cuts to USC in next month’s budget and instead said funds will largely go on increasing teacher, nurse and garda numbers.

His comments will be viewed as a U-turn by the lead government party after Fine Gael pledged in its general election manifesto to cut USC by 1% to help “squeezed” middle-income earners. While Fine Gael specifically promised this cut next year, the Programme for Government and separate deals with Fianna Fáil make more general pledges on when or how to cut the tax.

Last night, Mr Noonan also dismissed expectations that a full inquiry will be launched quickly by the Government into Nama’s Northern property portfolio sale.