Budget 2021: Brexit, Covid-19, housing, and health spending to be finalised by leaders

Major spending in areas of housing, health and preparation for Brexit along with attempts to help sectors impacted by Covid-19. File picture. 

The leaders of the three coalition parties will meet today to finalise tomorrow's Budget.

As well as the fallout from Covid-19, the Budget will focus on housing, health, Brexit, and climate action.

On Brexit, there will be a dual-purpose €5 billion recovery fund to protect against a hard exit from the EU by the UK as well to mitigate the effects of the coronavirus pandemic.

On Covid-19, there will be measures aimed at the arts and hospitality sector targeted at those whose livelihoods have disappeared due to the pandemic, with other measures to support taxi drivers expected along with a compensation fund for businesses forced to close.

The hospitality industry is also expected to get a welcome reprieve with a cut in the Vat rate from 13.5% to 9%.

In housing, an extra investment of €700 million is expected for the building and retrofitting of social and affordable housing. 

A considerable chunk of the extra allocation will be siphoned off to local authorities who have been ordered to build more social houses.

Commercial rates are also expected to be waived until next year.

A further 2,000 extra education posts, including 990 SNAs will be announced, as well as additional Garda numbers.

The carbon tax will be raised by €7.50 per tonne.

On social welfare. the Pandemic Unemployment Payment is expected to be altered to allow the self-employed earn €480 a month while still claiming the payment, as well as three weeks paid parental leave on top of the existing two weeks.

A Christmas bonus for 400,000 people in receipt of the pandemic unemployment payment (PUP) and jobseeker's payment is also expected to be included in tomorrow's announcement.