Leo Varadkar kickstarts Fine Gael’s election campaign as tax cuts are pledged

Leo Varadkar has kickstarted Fine Gael’s election campaign by pledging five years of income tax cuts if he is returned as Taoiseach.

Mr Varadkar laid out fresh tax promises, giving back to workers up to €3,000 a year if Fine Gael remains in power.

His comments to a 2,500-strong crowd at City West in Dublin came after sustained suggestions by ministers that Fine Gael is “election ready”.

The Taoiseach outlined how Fine Gael in government over the last three budgets had increased the point at which people pay the higher rate of tax.

The point at which people pay the rate of 40% on income tax rose in the budget from €34,550 to €35,300. Mr Varadkar said he wanted to go further.

“So, over the next five budgets, we will commit to increase the point at which people pay the top rate of tax to €50,000 for a single person or €100,000 for a two-income couple. We will end this unfairness and allow hard-working people keep more of the money they earn,” he told delegates.

The changes would see taxpayers retain hundreds of euro annually, eventually earning up to €3,000 more after the five years.

Mr Varadkar also launched attacks on the opposition, zoning in on Fianna Fáil as well as Sinn Féin.

He said Fine Gael, when in Government in the past, had “rescued our economy on more than one occasion when it was sabotaged by others”.

He also said it was not easy negotiating with Fianna Fáil and its frontbench to renew the confidence and supply agreement with the opposition party.

Mr Varadkar said the “reckless economic mismanagement of the past was unfair” to all.

“It resulted in hundreds of thousands of jobs lost, public services slashed, taxes hiked, and future generations burdened with a huge national debt.”

Outlining other promises, the Taoiseach said Fine Gael wanted to provide more than 100,000 homes over the next 10 years for people on housing lists.

He also criticised spending plans of other parties.

“They seek to buy your vote using your credit card to pay for it. We all know the Fianna Fáil motto: ‘when we have it, we spend it’. We all know where that led us.

“And we’re not going back. Sinn Féin and the parties of the hard left are even worse. When they don’t have it, they’ll just borrow it.

“We know those policies will put Ireland back on the road to recession and austerity and we won’t allow that.”

The pledge to cut taxes and the attack on Fianna Fáil and Sinn Féin came after suggestions by ministers that the party is “election ready”.

There is also mounting frustration within Fine Gael over the pace of the Government support pact talks with Fianna Fáil, as they move into a fourth week. Several ministers have warned that some guarantee is needed from Fianna Fáil and that the negotiations to renew the pact must conclude soon.

Mr Varadkar, who says his party is “almost” election ready, concluded his speech by promising to guard Ireland’s economic recovery.

“We are the party that will take Ireland forward to long-term prosperity, away from the boom and bust economics of the past.”