It's Budget 2022 Day
And we'll have up to date coverage across our on-air and online channels, in association with EY Waterford.
Then on Wednesday's Déise Today, our Budget Special will air from 10-11am. Find out how the Budget will affect you and your family with expert economic analysis from Ronan Clinton Partner at EY, Dr Robbie Butler, lecturer in the Dept of Economics in UCC and we'll have reactions too from Waterford people, businesses, organisations, the charity sector, the childcare sector, Waterford politicians and many, many more.
Follow our live blog below for up to date news and announcements from Budget 2o22.
About €4.7 billion in additional spending is expected.
- These spendings will be across housing, welfare, childcare, public transport and sustainability.
- The budget deficit from Covid forecast to be €21.5 billion down from €34.5 billion.
- Public spending in 2022 will be €87.6 billion.
- Pascal Donohoe announces revenue raising measures of €230m in the budget, and a €4billon COVID contingency fund is being created
- Tax arrangements for international air crews under Section 127B of income tax code will change
"The old reliables"
The main weekly welfare payments, including the state pension, are to rise by 5 euro a week - along with the weekly fuel allowance. The point at which people start to pay the higher rate of tax will rise by €1,500. While carbon taxes will also increase from midnight, meaning petrol, diesel, coal and home heating oil will be more expensive.
- Excise on a 20 pack of cigarettes going up 50c with a pro rata on other tobacco products. Price of most popular cigarettes now €15
- Petrol to cost an average €1.28 more to fill a tank
- Diesel to cost average €1.48 to fill a tank.
Details for workers..
- The minimum wage is rising by 30c to €10.50 an hour
- Employees will be able to claim back 30% of vouched expenses for heat, electricity and broadband for working from home
- €520m tax package- rate at which people pay the higher rate of tax increased by €1,500 - personal tax credit, employee tax credit and earned income credit increasing by €50
- PRSI -reducing number of contributions for treatment benefits from 260 to 39 weeks
- €20bn over the next five years being made available. €6bn next year to, 15.6% up on 2021. €174m for direct delivery of 4,000 affordable homes next year
- The Help to Buy scheme will be retained for 2022 at current rates and reviewed next year
- Three year extension to pre-letting expenses relief for landlords
- new tax will be introduced for land which is zoned for housing and serviced but is not being developed.
- €7.50 increase in the carbon tax which will be reinvested in social welfare measures on fuel poverty and a just transition
- Extension of €5,000 relief for Battery Electric Vehicles to end of 2023
- Core health spending is to increase by €1bn to a record €20.38bn. Including capital and Covid provision it's €22.2bn
- 8,000 new posts across health system
- €250m fund to tackle waiting lists
- Health (Covid) €1bn for the health service in 2022 for Covid health measures. €200m of that will be held in a central contingency fund. Includes €500m for testing and tracing, vaccine booster campaign and PPE
- €0.5m for 19 extra ICU beds in 2022 bringing total to 340. 33% rise since start of pandemic
- Extension of free GP care to children aged 6 and 7
- lowering of drug payment scheme threshold to 100 euro
- improvement to dental access
- measures to reduce cost of hospital charges for children
- 30m euro for new drugs
- Women's Health package of 31m
- free contraception for women aged 17-25 from next August
- progress on period poverty
- more funding for sexual assault treatment units
- €105m for disability services
- €37m for expansion of mental health services
- €30m for national strategies including Cancer Strategy
- €716m investment in childcare in 2022
- €78m extra for National Childcare Scheme
- Linked to no increases in costs for parents
- New funding stream for 4,700 childcare providers from Sep 2022 on at a cost of 69m to improve conditions for workers
- Extend NCS to children under age of 15 from Sep 2022 at cost of 5m
- Parents benefit increase by 2 weeks to 7 weeks from July next year
- 980 new teachers will be hired
- More than 1,000 SNAs will be taken on.
- 3,320 additional CAO places as part of a 68m investment in higher ed
- €35m for cost of going to college
- The SUSI grant will be increased by €200 and changes to who can get it
- €200 euro for post leaving cert courses will be scrapped
- €34m for apprenticeship places
- 20,000 further education and training places
- €5 per week is being added to the state pension.
- €3 a week increase to the living alone allowance.
- €10 on the back to school allowance
- €10 on the working family payment
- Domiciliary Care Allowance from 3 to 6 months
- Rate of wage subsidy scheme for disabilities will rise by a euro a week
- 100% christmas bonus to be announced
- Various farming stock relief to continue
- General stock relief will continue until end of 2024
- Relief for young trained farmers to continue
- €376m programme for rural Ireland including 4m for the SICAP programme
Motoring and other transport
- A revised motor tax system
- 1% increase in VRT for bands 9-12
- 2% increase for bands 13-15
- 4% increase for bands 16-20
- €25m for a new youth travel card
- anyone aged 19-23 will get 50% discount on public transport
- Innovation Equity Fund to get a further €30m matched by €30m from EIB, to launch early 2022
- Extension of Corporate Tax relief to certain start ups until end of 2026
- New tax credit for the digital gaming sector of 32% up to a limit of €25m on the design, production and testing of a game
- Reduced VAT rate of 9% for hospitality sector will remain in place until August 2022
Recovery funding of €286 million#
- €90m aviation package
- €30m for protection and renewal of roads
- €50m ICT grants for schools
- €60m for extension of commercial rates waiver for Q4 targeted at hospitality, arts and tourism
- €30m for health for areas hit hard by pandemic - palliative, mental and disability
- €1.6bn being invested in water services next year
- New Mica redress scheme to be announced in coming weeks
- €11.1bn in 2022 for the National Development Plan
- €3.4bn for transport
-€ 1.4bn to develop public transport including money for BusConnects, MetroLink and DART+
- EV grants
- €108m for maritime funding
- €50m for business continuity supports
- €39m for enhanced marketing and product development
- Pilot basic income guarantee scheme
- €25m for the continuation of live entertainment supports
- €360m for active travel and greenways
Community and Justice
- 800 new gardai and 400 garda civilian staff in 2022
- €28m for ending direct provision in line with white paper
- €5m for new small capital grant scheme for community centre upgrades
- €6.7m for a youth justice strategy to tackle anti-social behaviour
- Package on domestic and sexual violence including extension of legal aid for victims and funding awareness campaigns
EY exists to build a better working world, helping create long-term value for clients, people and society and build trust in the capital markets.
Over 100 people in EY Waterford enabled by data and technology connected to diverse EY teams in over 150 countries help clients grow, transform and operate.
Working across assurance, consulting, law, strategy, tax and transactions, EY teams ask better questions to find new answers for the complex issues facing our world today.
Follow EY's Budget updates here.