Yesterday was D day – and by that we mean Budget day – the day when men and women in suits in a little room decide what the countries money will be spent on.
Today Niall wanted to get your reaction to the budget. It certainly seems like people on social welfare were the big winners this year. I want to know what you think of the budget – are you happy with it or are you disgusted and feel hard done by.
Here is a summary of it –
- A total of €1.83 billion has been allocated to housingin Budget 2018, with 3,800 social houses to be built by local authorities and approved housing bodies.
- The Housing Assistance Payment Scheme will increase by €149m, enabling an additional 17,000 households to be supported and accommodated next year.
- Funding for homeless services will increase by €18m to more than €116m.
- The Government has said 4,000 social housing homes will be delivered next year through the Social Housing Current Expenditure Programme.
- An extra €500m for the direct building programme will see 3,000 additional new build social houses by 2021.
- €750m is to be made available for commercial investment in housing finance.
- The level of stamp duty on commercial property transactionswill rise from 2% to 6% from midnight.
- The vacant site levywill increase from 3% in the first year to 7% in second and subsequent years.
- A new house-building entityto boost construction has been announced.
- An additional 1,300 teaching posts have been announced for next year, of which 300 are being used to reduce the primary pupil teacher ratioto 26:1.
- €1.7 billion will be invested in special education, with more than 1,000 new Special Needs Assistants being recruited before September 2018.
- An additional 800 gardaí will be recruited during 2018. Another 500 civiliansto be hired also.
- The health allocation includes an additional 1,800 staff in frontline services across acute, mental health, disability, primary and community care sectors.
- A reduction in prescription charges for all medical card holders under 70from €2.50 to €2 per item.
- The monthly cap drops from €25 to €20, with the threshold for the Drugs Payment Scheme dropping from €144 to €134.
- An increase of €685m in allocation to the Department of Health brings total funding to almost €15.3bn next year.
- From the last week of March, there will be a €5 per week increase in all weekly social welfare payments, including disability allowance, carer’s allowance, Jobseekers’ Allowance and the State pension.
- A Christmas bonus payment of 85% will be paid to all social welfare recipients in 2017.
- There will be a €20 increase in the earnings threshold for the One Parent Family Payment and Jobseekers’ Transitional scheme.
- The threshold for the Family Income Supplement will rise by €10 per week for families with three children. €2 per week rise in the rate of the qualified child payment.
- There will be a €2.50 increase in the Telephone Support Allowance for those receiving the Living Alone and Fuel allowances.
- The home carer credit will rise by €1000 to €1,200.
- The point at which an income earner attracts the higher rate of income taxwill rise next year by €750 per annum.
- The entry point for single earners will increase from €33,800 to €34,550.
- Targeted changes to Universal Social Chargewill reduce rates but do not narrow the USC tax base.
- The entry point to USC will remain at €13,000.
- The 2.5% USC rate will be reduced to 2% with the ceiling for the new rate increased from €18,772 to €19,372.
- The 5% USC rate will be reduced to 4.75%.
- A working group will be set up over the coming year to plan the amalgamation of the USC and PRSI over the medium term.
- The Earned Income Credit for the self-employed will rise by €200 to €1,150 a year.
- Reduction in seven-year period for owners to enjoy full relief from Capital Gains Tax to four years.
- Mortgage interest reliefwill be cut next year in a move that will affect about 300,000 homeowners.
- The relief for people with loans from 2004-2012 is being continued to 2020, but at just 75% of the rate in 2018, 50% in 2019 and 25% in 2020.
Sugar tax – we will be talking about this in more detail later on in the show.
- From April 2018, there will be a 30 cent per litre of tax on drinks with over 8g of sugar per 100ml.
- There will be a reduced rate of 20 cent per litre on drinks with between 5g and 8g of sugar per 100ml.
- The excise duty on a packet of 20 cigarettes will rise by 50 cents.
- The VAT rate on sunbed services is to increase from 13.5% to 23%.
- There will be €17 million for the Renewal Heat Incentive and to incentivise an increase in electric vehicles.
A Rainy Day Fund will be established in the coming year, with at least €1.5 billion transferred to it from the Ireland Strategic Investment Fund.
Are you better off following the release of the details of Budget 2018?