Crunch meetings as budget negotiations go down to the wire

There has been a push to increase the standard rate cut-off point for income tax. Picture: PA Wire

Government leaders are due to hold further meetings in the days ahead as budget negotiations go down to the wire.

The three coalition leaders, Finance Minister Jack Chambers, and Public Expenditure Minister Paschal Donohoe met on Thursday night as part of a series of crunch meetings before the budget is unveiled next Tuesday.

Within Government there has been a widespread push for increasing the standard rate cut-off point for income tax, with Mr Chambers previously saying that workers will be €1,000 better off between tax and cost-of-living measures.

Jack Chambers indicated workers will be €1,000 better off between tax and cost-of-living measures. Picture: Leon Farrell/Photocall Ireland

Indications are that the rate could be increased by €2,000, meaning that taxpayers will not enter the 40% upper rate until earnings up to €44,000.

Changes to stamp duty on the bulk-buying of houses are also on the cards, but it will not be as high as the 10% initially sought by junior finance minister Neale Richmond.

In addition, the Help to Buy grant is due to be extended into 2026, while the mortgage interest relief scheme will be extended.

Social Protection Minister Heather Humphreys has previously publicly pushed against big increases to the Jobseekers Allowance, citing the country being at full employment.

However, one Government source indicated that Ms Humphreys had not pushed as hard for the proposal in budget bilateral negotiations.

While Ms Humphreys is pushing for €15 increases, it is expected that the final amount in the budget could be between €10 and €12 for social welfare rates such as the State pension.

Heather Humphreys is pushing for €15 increases, but it is expected the final amount in the budget could be between €10 and €12 for social welfare rates such as the State pension. Picture: Brian Lawless/PA Wire

Education Minister Norma Foley has been pressing for funding to staff 350 extra special classes, which will be required to meet demographic needs. This would include hundreds of new teaching posts as well as around 1,500 SNAs to support children.

Ms Foley also wants to expand the free book scheme to Leaving Certificate level.

Meanwhile, Health Minister Stephen Donnelly has set the expansion of women's health measures and creating extra hospital bed capacity as two key priorities.

Mr Donnelly has stressed the importance of ensuring around 300 new hospital beds which will be ready in the next year can open, which would require around €40m in funding to staff.

It comes as the Irish Nurses and Midwives Organisation (INMO) announced that it intends to ballot its members over the HSE’s recruitment moratorium and the impact it is having on staffing across the public health service.

Tillage farmers can expect a boost, with Minister Charlie McConalogue set to fulfil promises made earlier this year to get €100 per hectare payment for field crops planted.

Having secured €200 per suckler cow payment for farmers in Budget 2024, the minister will see another increase on this but it may not be the €300 that some had been hoping for.

The national scheme which currently provides €50 per cow is to be raised to €75, while in the sheep sector, the payment for ewes will be increased once again after being raised to €20 per ewe in 2024.