All the Latest news and updates on Budget 2014

So you have heard the leaks on the television and radio informing you that Budget 2014 will be another severe Budget  imposed on the Irish People. 

We will keep you up to date with all the Latest news as and when it happens.

Finance Minister Michael Noonan has announced #Budget2014

 Read the summary of Budget 2014 here


McCarthy Accountants will sort through the details and have the key points available to read at a glance. 

#Budget2014 involves €2.5bn in spending cuts and tax increases

No tax relief on top range private health insurance plans

Prescription charges for medical card holders increased

Bereavement Grant to be discontinued

No change to basic social welfare rates

€100 Jobseeker’s Allowance rate extended

Budget 2014 involves €2.5bn in spending cuts and tax increases

• Pensions
0.6% pensions levy increased to 0.75% and extended until end of 2014
• Unemployed
€9m allocated to complete roll-out of ‘one stop shop’ Intreo offices for unemployed
• Licence
RTÉ’s income from free TV licence in the household benefits package to be cut by €5m a year
• Health
Tax relief no longer allowed on top range private health insurance plans, which cost over €1,000 per adult and €500 per child
• Health
Review of all medical cards to save €113m by removing ineligible and redundant cards
• Youth
€14m allocated to Youth Guarantee Fund to people over 25
• Health
Medical cards for eligible unemployed to be replaced with GP only card on return to work
• Health
Prescription charges for medical card holders to increase from €1.50 to €2.50
• Grant
Bereavement Grant of €850 to be discontinued from 1 January
• Garda
New garda recruitment programme next year
• Education
€5m allocated for books to rent programme in primary schools
• Education
Over 1,250 classroom and resource teachers to be recruited
• Education
No increase in primary or post primary class sizes
• Fuel
No change in rate or duration of weekly fuel allowance
• Welfare
Child benefit rates being maintained
• Welfare
No reduction in basic social welfare rates
• Benefit
Number of days for entitlement to Illness Benefit increased from three to six days
• Maternity
Maternity benefit rate to be standardised at €230 per week
• Allowance
Telephone allowance for household benefit recipients to be discontinued
• Benefits
Income thresholds for over 70s on medical cards to be lowered to €900 per week for couple and €500 for a single person
• Health
€20m allocated for mental health services under Vision for Change initiative
• Benefits
Reduced rate of Jobseeker’s Allowance of €144 to apply to those aged 25 from January
• Benefits
€100 Jobseeker’s Allowance rate to apply to people up to age 24
• Jobs
300,000 places in work, education and training programmes to be provided in Pathways to Work 2
• Jobs
€200m from licence sale to be used to support local economic activity and job creation
• Health
€200m from National Lottery Licence sale ring-fenced for National Children’s Hospital construction
• Housing
€30m allocated to restart State’s house building programme
• Housing
€10m allocated for unfinished housing estate resolution initiative
• Priory Hall
€10m allocated to resolve problems at Priory Hall housing complex
NAMA to invest €2bn in Irish commercial market over coming years
• Jobs
Proportion of workforce in schools capital works to be drawn from long-term unemployed
• Bailout
Govt expects to exit bailout programme by 1 January
• Deficit
Budget to bring deficit to 4.8%, ahead of required target
• Fuel
No rises in excise duty on petrol, diesel, home heating oil or gas
No increases in VAT rates
• Tax
No change to income tax or USC
• Banks
New domestic bank levy to contribute €150m to the Exchequer from 2014 to 2016
• Tax
New 41% rate for DIRT and exit tax applying to life assurance policies and investment funds
• Alcohol
Excise duty on 75cl bottle of wine up 50c, from midnight
• Alcohol
From midnight, pint of beer/cider up 10c
• Cigarettes
From midnight, pack of cigarettes up 10c
• Family
One Parent Family Tax Credit to be replaced with Single Person Child Carer Tax Credit, available only to the principal carer of the child
• Credit
Loan applications of up to €3m can now be appealed to Credit Review Office
• Revenue
New measures to help Revenue target fraud, illegal tobacco selling and fuel laundering in the shadow economy
• Magdalene
All lump sum payments to Magdalene Laundries claimants to be tax exempt
• Business
New Start Your Own Business scheme for those unemployed for 15 months, with two-year exemption from income tax
• Business
Capital Gains Tax Relief for entrepreneurs, with conditions
• Tax
Corporation tax rate remains at 12.5%
• Tax
Commercial property purchased by end of 2014 to be exempt from Capital Gains Tax
• Initiative
Living City Initiative, to assist regeneration of retail and commercial districts, to be extended and criteria broadened
• Incentive
Home renovation tax incentive scheme, payable over two years, to be introduced
• Tourism
Zero rate of air travel tax from 1 April 2014
• Tourism
9% VAT rate in tourism sector to continue
• Jobs
Govt introducing 25 pro-business and pro-jobs measures
• Education
€25m cut in funding to third-level institutions to continue
• Education
No increase in pupil-teacher ratio in free schools
• Health
Free GP care for under fives in 2014