Budget 2019: The main points

Budget 2019 was announced by Minister for Finance and Minister for Public Expenditure and Reform Paschal Donohoe this afternoon and here are the main the points to take from Budget 2019.

A €5 euro increase in social welfare and a €25  increase in back to school allowance are just some of the positives measures announced for Budget 2019.

The cost of a packet of cigarettes will go up by 50c, bring the total cost of an average packet from the most popular category to €12.70. The hospitality sector will be hit hard by a tax rise from 9 per cent to 13.5 per cent.

Income Tax 

•  The entry point to the higher rate of income tax for all earners will be increased by €750 which will raise it from €34,550 to €35,300 in the case of a single worker.
•  Universal Social Charge (USC) will be reduced from 4.75 per cent to 4.5 per cent.
• The hourly minimum wage will be increased to €9.80

Social Welfare 

• Payments will go up by €5 from March 2019 onwards.
• The 100% Christmas bonus will be restored and remain in place for all social welfare recipients this Christmas 2018
• The Back to School allowance will be increased by €25.
• There will be a new paid parental leave scheme introduced in November 2019, providing two extra weeks’ leave to every parent of a child in their first year.
• An increase in the earnings disregard for the one parent family payment and introduce a maintenance disregard for the working family payment.
• There will be an increase of €2.20 per week to the qualified child payment for under 12s, and an increase of €5.20 a week for over 12s.

Housing 

• A total of €2.3 billion will be allocated into the housing programme for 2019.
• €1.25 billion will be allocated for the delivery of 10,000 new social homes in 2019
• 6,000 new affordable homes will be built

Education

• The total into the Department of Education will be 10.8 million to the Department of Education will be at €10.8 million, of 6.7%.
• An addition 1,300 posts will be made available for new teachers.
• The Government will also be investing over €1.8 billion to support children with special educational needs. This will allow for up to an additional 950 Special Needs Assistants to be recruited in 2019, bringing the 10 total number to over 15,900.

Transport 

• The government will provide €1.26 billion through capital expenditure through to 2021 will be provided to the Department of Transport, Tourism and Sport.
• €286 million being made available from next year for them to support projects such as;
  • The N4 Collooney to Castlebaldwin and the Dunkettle Interchange
  • Completion of the runway overlay project at Knock Airport
  • Design, planning and implementation of cycling and walking projects around the country.
• €40 mill will also be made available for pavement repair and rehabilitation works on regional and local roads and also to maintain new and existing infrastructure.

Tourism 

• The Government has announced an increase in  VAT in the hospitality sector. It will rise from 9 per cent to 13.5 per cent and Minster Donohe believes it will raise €466 million and support expenditure in other areas.
• Tourism initiatives such as the Hidden Heartlands and the Wild Atlantic Way will receive €4.5 million as part of €35 million for “targeted supports” in the sector
• The film industry, Donohoe says he’s introducing a “new, time-limited, regional uplift of an additional 5 per cent that will taper out over 4 years” to ensure all around the country benefits. Further details will be available in the finance bill.

Health

•  €84 million will be provided for Mental Health Services in 2019 bringing the total available funding for Mental Health to €1 billion.
•  50 cent reduction in prescription charges from €2.00 to €1.50 for all medical card holders over the age of 70.
• €25 increase in the weekly income threshold for GP Visit card.

Parents

• Parents are to receive two extra weeks’ paid leave to every parent of a child in their first year.
•  A new paid leave scheme will take effect from November 2019 which the Minster said will increase to seven extra weeks over time
•  There will also be increases to Child Benefit payments as part of an across-the-board increase of €5 on all weekly Social Protection payments.

Motor 

• The government will be investing €164 million in targeted measures to achieve Ireland’s objectives in energy efficiency and renewable energy and as a result, a 1% surcharge for diesel vehicles will apply across all VRT bands.
• This is designed to encourage the uptake of gas-propelled commercial vehicles as an economic and environmentally friendly alternative to diesel.
• This is designed to encourage the uptake of gas-propelled commercial vehicles as an economic and environmentally friendly alternative to diesel.
• VRT relief for hybrid vehicles will be extended until 2019.

Cigarettes 

• Excise duty on a pack of 20 cigarettes by 50 cents, with a pro-rata increase on other tobacco products, bringing the price of cigarettes in the most popular price category to €12.70.
• Minimum Excise Duty on tobacco products will also be increased so that all cigarettes sold below €11 will have the same excise applied as cigarettes sold at €11.

Additionals