Price of cigarettes, petrol and diesel rises

The price of cigarettes, petrol and diesel increased at midnight last night following Finance Minister Charlie McCreevy’s budget yesterday.

However, the increases in pensions, social welfare and child benefit will not come into effect until the new year.

Mr McCreevy’s budget has drawn criticism from many quarters, with the opposition and business leaders slamming his decision to raid the Central Bank and the Social Insurance Fund and then pretend that this is not “borrowing”.

The Small Firms Association has said the minister “broke open every little piggy-bank of a reserve fund he could find”.

The association criticised the decision to borrow from the Central Bank and the SIF, but also his plan to collect corporate taxes earlier.

The SFA said Mr McCreevy is “sucking the cash flow out of business”. For his part, the minister has rejected suggestions that yesterday’s budget will leave his successor with no option but to borrow next year.