The sugar tax, and extra investment in education and childcare are among the highlights of Budget 2018, as delivered by Finance Minister Paschal Donohoe this afternoon.
Minister Donohoe began the Budget on a positive note, announcing that unemployment is at its lowest level since 2008, at 6.1 percent.
The Government announced plans to increase spending by 3.4 percent, with total tax reductions of €335 million.
Housing was listed as a ‘priority’ for the Government, with the unveiling of a new vehicle, Home Building Finance Ireland, to help with debt.
In all, 3,800 new social houses are planned; while stamp duty on commercial property transactions will increase from 2 percent to 6 percent.
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Investment in homeless services has been increased to €116 million, which roughly equates to €29K per homeless person.
One of the biggest talking points in the Budget is the sugar tax. The tax will come in at 30 cent per litre of drinks with 8g of sugar per 100ml; it will take effect from next April.
A packet of cigarettes will go up by 50 cent, while the VAT rate for sunbeds is increasing by almost 10 percent - on account of the ‘proven link with cancer’.
There has been no increase in the price of diesel.
Tusla, the Child and Family Agency, is to receive extra funding of €40 million for child protection; this brings the total to just under €745 million.
The childcare sector is to receive €20 million of extra investment, which will facilitate the extension of the free pre-school scheme to two years.
Qualified child payment will increase by €2 a week under the new budgetary measures.
In the realm of Education, the Government has pledged spending of over €10 billion for 2018. This will support the creation of an additional 1,300 posts in schools.
The student/teacher ratio is also set to be reduced to 26:1.
Meanwhile, over €1.7 billion has been pledged for special education needs, facilitating the recruitment of 1,000 additional Special Needs Assistants.
The USC rate will drop slightly from 5 percent to 4.75 percent, while there will be a €5 weekly increase in all social welfare payments from next March; this will include disability allowances and State Pensions.
In Health, the Government has pledged an extra €685 million worth of investment.
The Drug Payment Scheme threshold has been reduced by €10, from €144 to €134; while the prescription charge for medical card holders under the age of 70 has been reduced from €2.50 to €2.
Elsewhere, €471 million will be made available to primary care over the course of 2018 to 2021, which will facilitate investment in the children’s hospital.
In other news, the Government will be investing an extra €9.6 million in transport funding.
A loan scheme will also be set up to help small businesses hit by Brexit.
