€3.5bn in cuts on the way in December's budget

The government has announced it's to make cuts of up to €3.5bn in December's budget.

In a document submitted to the Troika yesterday, the government has outlined various areas such as personal income tax and motor tax will face changes while other areas of taxation will see an increase.

It told the IMF as part its quarterly review on our bailout programme, the government will consider broadening the personal income tax base, restructuring motor tax, introducing a property tax and increasing excise duty in December's budget.

The government are hoping that such measure will generate revenue of at least €1.25bn.

Spending by government departments will be slashed by €2.25bn which will include social welfare cuts and a reduction in the total pay and pensions bill.

It's said the new property tax will replace the current Household charge, the cost of which will be based on the current market value of the property rather than it's square footage.

They also said that any further bailouts can be avoided through a restructuring of Permanent TSB and reaching a deal on promissory notes on the former Anglo Irish Bank.