Budget 2020 announcement day will be October 8th 2019.
Budget 2020 – is generally expected to be positive again – with possible tax cuts and/or spending increases totalling about €700 million.
There will be a ratio of 2:1 in favour of increased spending, meaning €233 million for tax reductions and €466 million on extra spending.
The Minister for Finance said in September Budget 2020 will be formulated on the basis of a disorderly Brexit . The budgetary package of €2.8 billion; €2.1 billion already pre-committed to expenditure measures as set out in the Summer Economic Statement and the balance of €0.7 billion for further allocation, will still apply.
Social Welfare and
It is expected there will be some increases to social welfare and State Pensions – but it might not be as simple as a €5 flat-rate increase for everyone. Any increases may be more targeted to those in need.
The Christmas Bonus cannot be fully guaranteed yet – but we expect it will be paid out again at 100% in 2019 – the same as last year.
Further USC changes are expected – as it is gradually phased out. One option is to increase the threshold at which the 2% rate is applied.
It is also expected that there could be small increases to Income tax thresholds. This will be in line with an expected increase to the minimum wage – to prevent any rise being affected by tax.
An increase to the Earned Income Credit for self employed workers is also due – as it moves towards the target of €1650 to match the PAYE credit.
The Help to Buy Initiative is due to end in December 2019 – so we might get an extension of that in Budget 2020
Alcohol – there has been no increase in duty on alcohol since 2014. So maybe Budget 2020 will see alcohol duty raised?
An increase of 5c on a pint of beer and a measure of spirits would bring in €59 million a year.
A similar increase on