Budget 2021: Reaction to 'unprecedented' €18bn package

Paschal Donohoe's announcement of the Budget 2021. Picture: Gareth Chaney/Collins Photos Dublin

After the Government's announcement of an “unprecedented” €18bn budget package, we look at how special interest groups have reacted. 

HEALTH

Irish Nurses and Midwives Organisation on the €4 billion extra spending on the health service: "This is a very welcome, substantial and much-needed increase in the health budget. The extra four billion is not only a necessary response to Covid, but recognition of the indispensable work that our members do in the health service every single day.

“Health funding cannot be like a tap – switched on and off from year to year. We need to see multi-annual, clear commitments to building capacity, getting staffing right, and moving to a universal healthcare model. The money needs to be spent well."

Irish Hospital Consultants Association: "We welcome much of what is contained in Budget 2021. The importance of the healthcare system to our society and economy has never been clearer. While we are playing catch-up, investment of an additional €4 billion in healthcare deserves to be recognised and provides much needed backing at a crucial time.

Alcohol Action Ireland: "We welcome that Budget 2021 has not reduced alcohol excise duties and that the Ministers, guided by public health alcohol policy, have not acquiesced to the extensive lobbying of the alcohol industry, who had sought a 15% reduction, which would have stimulated greater alcohol use."

Irish Pharmaceutical Healthcare Association: "€50 million for new medicines next year is a game-changer for patients with serious medical conditions"

Inclusion Ireland: "We welcome the additional €20 million in funding for voluntary disability services to progress Transforming Lives, and the €100 million increase in funding for a range of measures, including integration, de-congregation, and the restoration of day services. However, the devil will be in the detail and we must see the necessary delivery plans to back up these commitments."

National Youth Council of Ireland: "The €5m in additional investment in youth services announced in Budget 2021 is very welcome. This funding indicates a recognition of the impact Covid-19 on young people’s lives, and the vital role youth services play in helping respond to and mitigate the worst of these."

Down Syndrome Ireland: "People with Down syndrome and other disabilities have been disproportionately affected by the pandemic. While it’s positive to see an increase of €100m disability funding in Budget 2021, we are keen to see how this translates into a real increase in the quality and quantity of supports available to allow people with disabilities to live their lives on their own terms. We will be watching closely to see how any additional funding will be allocated."

Family Carers Ireland: FCI "is deeply concerned that many family carers will be worse off as a result of the measures."

EDUCATION

Irish National Teachers’ Organisation on primary school class size reduction to a 25:1 ratio:  "During a pandemic, we had the particular shame of being the only country in the EU to issue guidance for social distancing for a class of thirty or more. Smaller class sizes will make it easier to keep our distance.”

Irish Universities Association: The provision of €50m extra supports for students and the confirmation of ongoing funding for the extra 5,000 places in higher education in addition to further demographically-driven places next year are welcome features of Budget 2021."

National Women’s Council: "It is extraordinary to see no additional investment into Early Years Education and Afterschool Care when the costs of childcare are amongst the highest in the EU and investment is at such a low level"

HOUSING/HOMELESSNESS

Peter McVerry Trust: "Measures outlined in today’s budget deliver on a more ambitious and enlarged social housing programme, and a significant programme of capital investment in key areas such as education, health and housing."

Society of St. Vincent de Paul (SVP): "Despite welcome increases in the Living Alone Allowance, the Fuel Allowance and targeted supports for children, today’s Budget has provided little to prevent escalation in poverty or a growth in inequality."

Simon Community: “This increase in homelessness funding is crucial to help meet the higher costs incurred in meeting public health requirements for homelessness services. But a proportion of this funding must be directed to homelessness prevention measures, such as tenancy sustainment and outreach teams, which will help prevent the number of people being pushed into homelessness.”

Barnardos: "Budget 2021 has seen some welcome investment in protecting the most vulnerable children and families, notably an increase of €61 million in funding for Tusla. Barnardos welcomes other measures including increases to the Qualified Child Increase (QCI); investment in education for children with special educational needs through the expansion of the Social Inclusion Programme; and changes to the Working Family Payment and One Parent Family Payment. 

"Barnardos is disappointed that there has been no expansion of the roll-out of the free books scheme; and that there is no mention of additional family support services for children living in direct provision or homeless accommodation."

ALONE: “We are delighted to see the increased investment in healthcare such as the home care support hours and the increased capacity. We are disappointed to see that older people were not mentioned enough and the measures did not adequately reflect the pre-existing and exasperated challenges faced by older people in today’s world. We are also disheartened to see the Government has failed to set the State Pension at the average weekly wage agreed in their own Roadmap for Pensions Reform 2018 - 2023."

Threshold: "Specific allocation to cost-rental housing is welcome. Scale and speed are key in making cost-rental affordable for tenants on modest incomes, by setting rents and supports to facilitate ability to pay."

Brokers Ireland: "The move in today’s Budget to extend the Help-to-Buy scheme to the end of 2021 is very welcome, but it is disappointing that the opportunity wasn’t taken to include second-hand homes."

BUSINESS

Restaurants Association of Ireland: “This budget is a life-line for the restaurant and hospitality industry. We welcome the reduction of the VAT rate from 13.5% to 9%. We also are pleased to see the Covid Restriction Support Scheme (CRSS) announced offering cash payments of up to €5,000 a week for firms forced to close due to Covid-19 restrictions. While these new measures announced today won’t fix everything, there is now hope for many restaurant businesses who are struggling."

Vintners Federation of Ireland: "Measures introduced in Budget 2021 to aid the sector will bring some degree of confidence to publicans, who are facing into a protracted period of uncertainty after enduring a near total shutdown for most of 2020. However, there is disappointment the budget failed to reflect the fact these outlets will have been closed for almost nine months with minimum support."

Irish SME Association: ISME broadly welcomes today’s budget in which there are a number of measures designed to keep businesses and their employees going. It is essential that these measures are introduced because of the scale of damage endured by thousands of businesses in Ireland.

SIMI: "In the context of the current economic climate, Covid, Brexit, and an already depressed new car market, the Industry is disappointed with the increase in VRT announced in Budget 2021. Overall, the changes to the VRT system result in an average €1,000 increase on the price of a new family car.

"This will make the new car market even more challenging for next year, reducing demand and slowing down the replacement of the oldest cars in the national fleet with newer lower emitting cars, which in turn will make it more difficult to drive down emissions."