Labour rejects tax cuts in favour of public spending

Labour have left out income tax cuts and a first-time buyers’ grant in their alternative budget proposals in lieu of investing more in childcare and public services.

Party leader Brendan Howlin said proposed cuts to taxes, such as the USC, would “barely cover the cost of a cup of coffee a week” and money would be better spent improving access to services.

New fundraising initiatives proposed by Labour include a €112m sugar tax fund next year; a €150m bank levy; a 20c rise for cigarettes; and a minimum effective rate of corporation tax.

Mr Howlin said his party’s budget plan is better for young people, those seeking work and young families.

Labour, though, has decided not to propose tax cuts in its alternative budget.

Labour also said Fine Gael proposals for a first-time buyers’ grant would only push up house prices and ultimately go into developers’ pockets. Instead it wants more investment in social housing , with additional spending of €1.74bn next year. The plan includes a costed €177m childcare plan, which would see families pay a maximum €4.25 an hour after State subsidies. The party proposes a €5 weekly rise in pensions; the indexation of welfare payments; and a €5 increase in universal child benefit payments. Prescription fees would be capped at €1 per item.