FINANCE MINISTER MICHAEL McGrath will be in the hot seat today, taking to his feet in the Dail at 1pm to announce Budget 2024.

McGrath is the first Fianna Fail member to hold the office since Brian Lenihan and the dark days of austerity which led to the downfall of the party after the crash.

This time around, McGrath says he will be telling a different story than his predecessor.

The total Budget 2024 package is about €6.4 billion, including taxation measures worth €1.1 billion.

Here’s what do we know so far:

Cost-of-living measures

Electricity credits amounting to €450
Double child benefit payment
Double fuel allowance payment
Delay in October’s excise restoration on diesel and petrol

Tax measures

Cut to lowest 2% of USC
Increase in the entry point to the higher rate of income tax to around €42,000
‘Slight’ PRSI increase

Social welfare

Roll out of the new pay-related-benefit scheme to ensure those that lose their jobs get higher social welfare payments that are linked to their previous salaries (as reported by The Journal on Saturday)
€12 social welfare payment increases, such as the pension
Social welfare recipients will get the usual Christmas bonus, followed by an additional payment in January. This will amount to an extra €140 (double) for Child Benefit, €100 for the Qualified Child Bonus, €200 for the Living Alone Allowance, €400 for the Carers Support Grant, €400 for the Disability Support Grant, €400 for the Working Family Payment, and €300 for the Fuel Allowance.

Justice

Gardaí trainee allowance will also see a boost, rising from €185 per week to €305 per week, in a bid to recruit and retain gardaí in the force. Change will kick in from today. While the increased payments will begin on January 1, those in training between Budget day and the new year will receive a backdated lump payment for this period in January.
Increased budget to hit target of 800 to 1,000 new recruits next year.
A 25% increase – up from €105 million to €131 million – in Garda overtime to support high visibility policing to tackle anti-social behaviour in towns and cities
€4m provided for Garda Wellbeing Initiatives and medical costs to support the men and women serving in An Garda Síochána
A new national centre of excellence for the expanded Garda Dog Unit in Dublin, with the expansion to all Garda regions on a phased basis involving 50 handlers with access to 100 dogs
Providing funding for CCTV, bodycams, body armour, mountain bikes and public order equipment·
Funding to provide for the first Garda Reserve recruitment campaign since 2017 – this will open early next year
€12 million increase in funding to tackle Domestic, Sexual and Gender Based Violence and establish a new agency next year·
€9m to increase fees for criminal legal aid by 10% in 2024 to make progress in restoring criminal legal aid fees.
Following the Budget, more work will be undertaken with the legal profession on further strengthening criminal legal aid.

Housing

Rent credit increased to €750
Landlord tax break described as ‘modest’ – could see tax relief of up to 20% off a proportion of their rental income, but this measure would be linked to landlord staying in the market for a certain period.
Mortgage interest relief will also be announced for homeowners who have been badly hit by rate hikes. Around 160,000 mortgage holders will benefit from time limited relief worth €1,250

Business

New Increased Cost of Business Scheme (ICOB) will be awarded based on a percentage of commercial rates a SME paid in 2023
Minimum wage to increase by €1.40 to €12.70
No increase in tax-free allowance from employers

Education

Free school books up to Junior cycle (as reported by The Journal on Sunday)
Student grants to increase by €300
Post-graduate students will be eligible for grant support of up to €2,300
Families with an income of less than €100,000 will have college fees for undergraduate students halved to €1,500 this year (this is on top of a €500 cut announced last years budget for this college year)
All other families will see college fees for full time undergraduate students cut by €1,000. This is part of a wider package of reforms and supports to reduce the cost of education, due to be announced on Thursday.

Childcare

Further 25% reduction in childcare cost reduction was agreed late yesterday after tense talks over the weekend between the Department of Finance and Children’s Minister Roderic O’Gorman. Discussions were ongoing late last night on the details, however it is understood the measure will be introduced later in 2024.

Health

Budget talks were described as ‘challenging’ when it came to the health budget this year and it is understood that due to the significant overspend there is little to be announced today in new measures. The budget allocation for health was finalised and the allocation is focused on dealing with continued high inflation and increased patient demand.
Sources state that due to many more patients presenting to Emergency Departments and additions to waiting lists this year, much of the increased budget in health will be used to maintain existing services.

Other measures

50c increase on cigarettes
New tax on vaping to be announced
No further public transport fare reductions

The finance minister has said that following today’s budget, people’s living standard will improve – however, he has sounded warnings about the need to prepare for clouds on the horizon.

Transport Minister Eamon Ryan confirmed yesterday that an increase in PRSI was also being discussed in the afternoon.

“We need some tax-raising measures. We have to careful to get the balance right. Our economy is at full tilt. We have to protect people from the cost of living impacts but at same time we have to make sure that we maintain sustainable public finances,” he told reporters.

Tanaiste Micheal Martin has said the Budget will provide support to deal with the pressures they are under with the cost-of-living, while specifically mentioning the that it should help young people aged in their 20s and 30s.

He said the government will protect this age cohort’s future entitlements and secure their futures.

Meanwhile, Public Expenditure Minister Paschal Donohoe said “we really never know what is around the corner”, stating that the government is attempting to get the “balance right” in a way that will keep Ireland economically safe.

So, how will the day play out?

McGrath will begin his speech at 1pm, followed by Donohoe at 1.45pm. The speeches are expected to conclude at 2.30pm.

Sinn Fein will get an hour to reply, followed by Labour, the Social Democrats, People-Before Profit, and the three independent groups, with each party or group getting 45 minutes to speak.

All speeches are due to finish at 8pm and any Dail debate on any overnight financial resolutions will take place from between 8.30pm to midnight.

The Journal will bring you all the latest from Budget 2024 with a liveblog running throughout the day.

Our newsroom team and the politics team based in Leinster House will bring you all the latest as it happens, with breakdowns of what Budget 2024 will mean for you.

Stay with The Journal throughout the day and follow us @thejournal_ie and also on Facebook.

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