Middle income workers to gain just €2 a week in budget

Finance Minister Michael Noonan has compiled a plan which attempts to please businesses, farmers and landlords - but will see the so-called squeezed middle income earners gain as little as €2 a week.

Mr Noonan's tax package will also include:

• Tax breaks for landlords.
• A reduction in capital gains tax for start-up companies to 10pc on earnings up to €10m.
• A special deal for farmers that will allow more flexibility in their tax payments.
• Inheritance tax exemption to be raised by €40,000, to €320,000.
• Incentives to encourage the regeneration of historic dwellings.
• Doubling the €550 income tax credit for the self-employed.
• A hike to cigarette prices.