Record social welfare increases announced in Budget

Finance Minister Brian Cowen today announced record social welfare increases as he unveiled his first Budget to the Dáil this afternoon.

He increased unemployment benefit by €14 per week and increased child benefit by €10 a month for first and second children and €12 for any subsequent children.

Making his maiden Budget speech he also relaxed stamp duty for first time buyers of second-hand homes.

First-time buyers of homes to the value of €317,500 will from now on be exempt from paying stamp duty. Mr Cowen said this measure will encompass most second-hand homes bought by first-time buyers.

The stamp duty rates on houses up to €635,000 will be reduced.

In a surprising move, Mr Cowen said there would be no VAT increases on petrol, cigarettes or alcohol to keep down consumer price inflation.

But he said he planned to reduce excise duty rates on alcohol produced by micro-breweries to encourage employment and investment in the brewing sector.

He also introduced tax relief for young farmers in relation to livestock and land.

The Minister said the Budget showed the clear commitment of the Government to a fairer sharing of resources to the most vulnerable citizens.

He said: “It demonstrates our determination to invest in our community, our infrastructure and our future.”

He said he wanted his first Budget to improve services for the disabled, increase welfare payments above the rate of inflation and free minimum wager earners from paying tax.

Improving the equity of the tax system, keeping inflation low and increasing capital spending on public services were his other aims.

The Finance Minister said that today was the first of two more Budgets he hoped to present to the Dáil during the lifetime of the Government.

Good news for students came in the form of increased tax relief for third-level fees and on rent paid by private tenants.

Elsewhere, standard tax rate bands increased by 5% for single, married, and lone parents or widowed persons.

In agriculture, there will be accelerated tax relief on the cost of pollution-control measures to help farmers meet EU standards.

The maternity benefit increased by €14 per week and all other maximum personal social welfare rates increased by €14 per week.

Mr Cowen concluded by declaring that the country’s future was in safe hands with this Government and he resumed his seat to applause from the house.