Taoiseach pledges two more years of tax cuts

Taoiseach Enda Kenny has said that income taxes will be further reduced in next year's Budget.

He stated that yesterday's announcements were the first of three years of tax cuts for workers.

Fianna Fáil said that the Budget ignored lower earners, because their tax cuts will immediately be taken back in water charges.

However, the Taoiseach said that cutting taxes will help to create jobs - and there are two more years of tax cuts to come.

"The tax changes … are the first of three years to bring about a reduction in the rate of tax and other adjustments that will create 15,000 jobs over and above anything else that occurs in the normal way," he said.