Government is coming under increasing pressure to cut USC

All major parties want to keep the controversial tax — which generates around €5bn each year — despite a seismic shift in attitude among their own supporters

Fine Gael are also conscious that the Fianna Fáil minister will want to put his party’s tax stamp on the upcoming budget and may focus on USC. Picture: Niall Carson/PA Wire

The Government is coming under mounting pressure to cut the universal social charge (USC) in Budget 2024, with almost seven out of 10 voters calling for a complete scrapping of the levy.

All major parties want to keep the controversial tax — which generates around €5bn each year — despite a seismic shift in attitude from their own supporters in response to the cost-of-living crisis.

However, it is is understood that Finance Minister Michael McGrath is waiting on the summer economic statement — due out later this month — before turning his focus to what might be included in the budget, but that the parameters of tax changes will be guided by the programme for government.

Finance Minister Michael McGrath is thought to be waiting on this month's summer economic statement before focusing on the detail of Budget 2024. File picture: Gráinne Ni Aodha/PA

Fine Gael are also conscious that the Fianna Fáil minister will want to put his party’s tax stamp on the upcoming budget and may focus on USC.

A Red C poll for the Business Post revealed that 69% of voters want to see the tax abolished within the lifetime of this Government.

However, another poll, published in the Sunday Independent, shows that there has been little reaction to Fine Gael’s calls for a tax cut for middle-income Ireland.

Last month, three junior Fine Gael ministers called for tax cuts, but it appears to have made little difference to would-be voters, with those polled saying it would not change the way they vote or their support for Taoiseach Leo Varadkar or Fine Gael.

However, it did spark a bitter row within the Coalition, with claims of ‘kite-flying’ ahead of the next general election.

The poll also shows that there is little appetite for a snap election, with 45% of those surveyed preferring this Government to remain in place until 2025.

Writing in the 'Irish Examiner' today, Cork South-West Fianna Fáil TD Christopher O'Sullivan advocates for public transport to be made free of charge. File picture

Meanwhile, Fianna Fáil TD Christopher O’Sullivan has called for public transport to be made free as part of the budget in an effort to speed up climate targets. Writing in today’s Irish Examiner, Mr O’Sullivan said: 

The idea of free public transport is by no means new. 

"It’s a reality for hundreds of thousands of people living across various European cities, such as Tallinn and Dunkirk for quite some time.”

“In 2020, Luxembourg took those initiatives one step further and became the first country to make public transport free in a bid to tackle the country’s high level of private car usage and its resulting emissions.”

The Cork South West TD, the party’s spokesman on the environment and climate change, said a 50% cut to travel prices for young adults in the previous budget has resulted in a marked rise in the number of young people now using public transport.

Mr O’Sullivan said there is now an urgent need to expand our public transport system to ensure all regions of the country are included, as the transport sector represents about 18% of Ireland’s carbon emissions nationally.