Backlash over lack of ‘Brexit proofing’ in budget

Taoiseach Enda Kenny has said he hopes the benefits from the budget will be felt by every home as he faced a backlash over the lack of Brexit-proofing measures in next year’s spending plans.

During a Dáil debate on the budget, he said the Government did not have an endless pot at its disposal.

“Budget 2017 is the first budget of this new partnership government. This is a different type of government but it is one that is committed to combining all of our different talents to build a strong economy in order to deliver a fair society. This budget reflects the issues that are most important to our people and the future of our country.

“While our economy is recovering, that recovery has not been felt in every community or by every family. We must ensure that the right decisions are taken so that the benefits of a strong economy and a fair society can be felt by everybody.

“While the budget is a significant milestone for this Government and this Oireachtas, it is only a step — an important step — in the ongoing journey of a healing that we are taking as a people. To make sure that we all get to that destination together, we will not contemplate any reckless risks that might derail us.”

However, the minority government’s budget came under attack for failing to prepare for Brexit, which Britain has signalled will be triggered in 20 weeks.

Fianna Fáil leader Micheál Martin claimed there was a “lack of urgency or ambition” in the Fine Gael-led minority government and that “the core redirection away from Fine Gael’s ideology has been achieved”.

Mr Martin also argued that the budget had not included strong Brexit-proofing measures, adding: “The weak and directionless response to the Brexit vote is deeply serious. The budget should have included a number of specific scenarios for the impact of Brexit, but instead it is full of repetition of small measures, which are just tokenism.

“The base scenario in the budget assumes an exchange rate for next year of 85 cent to a euro. Yesterday the exchange rate was 91 cent to a euro. Given the behaviour of the [Theresa] May Government, assuming that sterling will strengthen by more than 6% is worse than foolish.”

Mr Martin said that measures in the budget were to undo the damage done by previous ones. But he lashed out at Mr Kenny’s administration and Fine Gael’s long-term goals, in an attempt to claim ownership for some of the measures contained in the budget.

Separately, Labour leader Brendan Howlin claimed that the Government did not know what the actual cost of the social welfare measures announced yesterday. The Government yesterday could not say when in March the €5 pension and benefit rises would be introduced. It could cost an extra €7m a week, depending on when the increases kick in.

Mr Howlin also said USC tax cuts for the lowest paid were “tokenistic”.

“The tax cuts announced yesterday amount to less than €2 a week for those on €20,000 and €3.25 a week for those earning median income,” he said.