Spending plan to go ahead despite concerns

Finance Minister Paschal Donohoe is to press ahead with ambitious additional spending plans for 2018, despite strong concerns being voiced about the credibility of his figures.

The publication of his summer economic statement —which confirmed he intends to introduce about €350m worth of new tax cuts and spending increases in October’s budget — has drawn stinging criticism from Labour leader and former public expenditure minister Brendan Howlin, who dismissed Mr Donohoe’s figures as “nonsense”.

Mr Donohoe confirmed that he intends to reduce by half the amount of money the Government will invest into a rainy day fund, as well as loosening the debt targets to allow for more capital spending.