#Budget18: Donohoe frames Budget as financial plan protecting hard-pressed households
Finance Minister Paschal Donohoe has attempted to frame budget 2018 as a financial plan focused on protecting hard-pressed households, acting to tackle the housing crisis and to create new defences from the Brexit fallout, writes .
In a detailed speech which began in the Dáil just after 1pm, Mr Donohoe confirmed a wealth of changes that will seek to benefit as many people in society as possible.
Under the early announcements revealed by the Finance Minister, every welfare payment will increase by €5 from the last week of March, while the income disregard for lone parents will rise by €20.
Widely flagged income tax changes for when someone enters the highest tax band were raised by €750, meaning the entry point is now €34,550 instead of €33,800.
Similarly, the 2.5% USC rate will be lowered to 2% to ensure people on the increased minimum wage of €9.55 do not pay the upper rate, while the 5% rate will be cut to 4.75%.
Separately, a new Home Building Finance Ireland agency will be set up through Nama and be given a €750m fund to encourage property developers to start building new homes.
It is expected the move could see 6,000 new houses and apartments built next year, which combined with a target of 50,000 new social housing developments is a key part in the Government's attempt to address the housing crisis.
The vacant house levy will also rise from 3% to 7% from the second year a property owner is not using their home as part of a similar step to kick-start the market, with Mr Donohoe saying "the message is clear: to have your levy lifted, you need to get on with developing your lands urgently".
In frontline services, €685m more in funds will be made available to health - a 5% rise - with the ambition of appointing 1,800 more staff, while the national treatment purchase fund's budget will rise to €55m to tackle the separate hospital waiting list scandal.
More than 800 extra gardai will also be appointed - with one TD quipping in the Dáil if all will be placed at Stepaside garda station - while the pupil teacher ratio in schools will be reduced to ensure class sizes are not larger than 26 children.
Among the equally high-profile plans will be a new Brexit protection loan scheme for companies at risk of the fallout from Britain's planned departure from the EU, with up to €300m made available for small and medium enterprises including food businesses exposed to the UK market.
Others include:
* increasing the rainy day fund to €500m per year and the transfer of up to €1.5bn from the Ireland Strategic Investment Fund
* a 50c cut to prescription charges from €2.50c and reduction of the monthly drugs payment cap from €25 to €20
* a sugar tax of 30c per litre on drinks with over eight grams of sugar per 100 mililitres of product, subject to EU state aid rules
* a 23% VAT on sunbed use to tackle cancer concerns
The €60.9bn total budget, which equates to €12,700 spent on every person, includes €55.6bn allocated to current expenditure and a total budget day package of €1.2bn.
In addition, taxes worth €335m will also be introduced to help fund investment.
However, issues are likely to be raised over the fact just €18m has been set aside for homeless services, a paltry sum of money made available for arts and culture, and just €9.6m set aside for transport next year.
Similar issues are likely to be highlighted over the cost of Taoiseach Leo Varadkar's strategic communications unit, which despite Mr Varadkar's insistence the unit was cost neutral in fact costs €5m a year.
