Workers may benefit by just €5 in budget

Low to middle-income earners may benefit by just €5 a week in next month’s budget due to tight restrictions on the amount of tax cuts that can take place and an internal cabinet row over where reforms should be made.

The likely increase has been outlined by a number of government departments just a fortnight out from the formal announcement of Budget 2017.

Under plans being strongly considered by Finance Minister Michael Noonan and Public Expenditure Minister Paschal Donohoe, the USC rate is likely to be cut by 0.5% for next year.