October budget will reduce taxes, childcare, transport and energy costs, Taoiseach says

“The objective will be to get people through the winter period and beyond in terms of cost of living, and that isn't just about energy costs," Micheál Martin said.

The October budget will see taxes reduced, along with cuts in the cost of childcare, transport and energy, the Taoiseach has said.

Speaking on Wednesday, Micheál Martin said the cost of living crisis is very serious, and the Government will take further action in the forthcoming budget to “comprehensively” make sure there is a sustainable pathway forward to protect those most in need.

“We will have targeted measures in the budget and we will also seek to focus on areas where costs are high, housing, the childcare issue, of course, in terms of many employees availing of childcare to enable them to get to work and other areas also in terms of public transport, and in terms of healthcare costs, but not until October,” he said.

“We've got to work through what's the most targeted approach to doing this, and that means a more comprehensive package and October time would make sense because the winter is going to be difficult and challenging.

“The objective will be to get people through the winter period and beyond in terms of cost of living, and that isn't just about energy costs," he said. 

Micheál Martin: "We will have targeted measures in the budget and we will also seek to focus in on areas where costs are high." Picture: Gareth Chaney/Collins Photos

"It's about costs and the effect on families and children, in particular, and if we can focus our efforts and there is work on the way at government level to do that, but it also relates to issues pertaining to pay, tax, which will form part of the budget.

"So it's not just one particular sort of package that has to be an integrated set of measures from pay, tax expenditure and cost-cutting, reducing costs in certain areas to take the pressure off family budgets.” 

In terms of inflation, Mr Martin said there is no question but that the war in Ukraine has created a significant pricing issue across Europe, in energy in the first instance, but also in food, and also creating a migration pressure.

Mr Martin said the 15% wage increase for top civil servants is 90% for doctors and consultants and is part of the FEMPI restoration.

“Legally, that is the situation, there's no circumventing of legal obligations on government to fulfil, by law the government has to do."