Cabinet signs off on €11bn budget package that will 'make a difference' to families

Cabinet signs off on €11bn budget package that will 'make a difference' to families

Through personal tax changes, Mr Donohoe said the Government is aiming to "put money back into your pocket". Picture: Moya Nolan

An almost €11bn budget package will stop a surge in prices from turning into a threat to jobs and will "make a difference" to families, the Finance Minister has said.

It comes as the Cabinet signed off on the 2023 Budget on Tuesday morning.

The full details of the budget will be announced at 1pm, with the Coalition hopeful that over €7bn in tax measures and spending €3bn-plus on a once-off cost-of-living package will be enough to see people through the worst of the current inflationary crisis.

Discussions on the shape of the budget only ended late on Monday night, with agreement finally reached on welfare measures, business supports and healthcare initiatives.

Earlier, speaking on his way into a special pre-Budget Cabinet meeting, Paschal Donohoe said the one-off measures due to be announced later today will be "significant".

"The key driver of this will be bringing forward a new support scheme for employers who are facing challenges regarding the rising cost of energy.

"We have to protect jobs and we have to put in place measures to stop a surge in pricing turning into a threat to jobs," he said.

Two new schemes will be announced to help businesses with the cost of electricity and gas.

For larger firms involved in exporting and manufacturing, businesses can receive up to €2m in financial aid but will have to produce a business plan to show how they will control their energy costs.

A second scheme, the temporary business energy support scheme, will target SMEs and will cover 40% of the increase in electricity or gas bills, up to a maximum of €10,000 per month per business.

These two measures will be backed up by a new low-cost loan, similar to the Brexit and Covid loans.

Through personal tax changes, Mr Donohoe said the Government is aiming to "put money back into your pocket".

He said the spending would be "broadly in line" with the parameters that were set out in the Summer Economic Statement.

Green Party leader Eamon Ryan said supports announced in the budget will help people through the winter.

"It really is a Budget to protect people through the winter, it can never be enough because we are facing very high bills but we have done everything we can to help.

"Help in social protection, increased social welfare for those most at risk, help in energy credits for everyone, help in business supports to help people hold onto the jobs, helping with free schoolbooks, college fees, continuing the lower costs of public transport, more childcare," Mr Ryan said

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