Fianna Fáil put pressure on McGrath to cut USC 

Finance Minister Michael McGrath told his party colleagues that he would bring in a 'fair and progressive tax package' and would 'mind the economy'. Picture: Gareth Chaney/Collins Photos

Fianna Fáil TDs and senators have pushed Finance Minister Michael McGrath to cut the Universal Social Charge (USC) in this October's Budget.

Imposed during the economic crash in the last decade, the USC has been earmarked by Fianna Fáil as a way to cut taxes for lower-paid workers as opposed to a tax-cut for middle-income workers as desired by Fine Gael.

It's understood that a number of representatives — among them Cork North Central TD Pádraig O'Sullivan, Clare TD Cathal Crowe, Cork East's James O'Connor, and Tipperary's Jackie Cahill — appealed to Mr McGrath to move on the tax in the budget.

Carlow-Kilkenny TD John McGuinness called for the introduction of mortgage interest relief, particularly for the large number of homeowners who have mortgages owned by vulture funds and are paying more than 7%. His call was echoed by Aindreas Moynihan, the Cork-North West TD, who also called for free travel to be extended to people who have epilepsy and have lost their driving licence.

There was also a call for a "significant increase" in the €500 rent tax credit — to be doubled or tripled — by the party's Dublin TDs. One of those TDs, Paul McAuliffe, also called for the expansion of the child benefit scheme to all children in school. 

John Lahart called for medical cards to be given to those with chronic illnesses, while TDs praised Education Minister Norma Foley for the Budget move last year which made primary schoolbooks free. A number of TDs called for this to be expanded to secondary school students.

In response, Mr McGrath told his party colleagues that he would bring in a "fair and progressive tax package" and would "mind the economy".

Speaking to the media ahead of the meeting, Tánaiste Micheál Martin said that the upcoming budget needed to be fair and “reflect the needs and concerns of the Irish people”.

Mr Martin also commented on whether a deputy leader needed to be appointed, saying that there had been a “cordial discussion” on the matter at a parliamentary party meeting last week, saying he had "no issue" engaging with members.

At the Fine Gael parliamentary party meeting, Taoiseach Leo Varadkar said the country can have" a good tax package" in Budget 2024 with €1.1bn set aside. He said all workers should benefit but the focus should be on the squeezed middle.