Simon Harris says budget tax package must deliver for ‘working people’

The Tánaiste has said there “has to be a tax package that delivers for working people” in the next budget.

Speaking ahead of the publication of the summer economic statement Simon Harris, who is also Minister for Finance, said the next budget needs to be “value for money” as the Government will “strive to improve public services”.

The statement will outline the position of public finances ahead of the publication of the budget in October.

Speaking to reporters outside Government Buildings ahead of cabinet on Wednesday, Mr Harris described the statement as “a pivotal moment in the annual budgetary cycle”, saying “there will be a personal income tax package” this year.

“I hear a lot of people saying things about a budget of eight billion, of course, it’s not that at all, that’s additionality,” he said.

“The budget next year for our country will be well over 120 billion euro, and it’s really important that right across the system we strive to get value for money, we strive to get impact, and we strive to improve public services.

“But I’ve also been really clear, particularly since taking up the finance portfolio, that there has to be a tax package that delivers for working people.

“There are far too many people in this country who play by the rules, work really hard, sit in traffic, and find themselves at the end of the week, at the end of the month, in just about getting by.”

Mr Harris was asked if the Government could afford to extend energy support provided to hauliers to deal with rising fuel costs.

The Tánaiste said the Irish economy is in “relatively good shape” and there has been “an ability to respond, but it is important we stay nimble”.

“I fully understand the concerns of people,” he said.

“If we were having this conversation a week ago, oil prices were falling, there was de-escalation in the Middle East, now we see the escalation of the conflict, oil prices rising again.

“So the Government’s approach to this would be the same as it has been from day one – to be nimble, to be agile, to keep things under review.

“It would be imprudent to start trying to predict where the war will be and where oil prices will be in six weeks’ time or so.

“And when it comes specifically to hauliers I’d make the point that the diesel rebate scheme we put in place (will be) until the end of September.”

Later, Taoiseach Micheál Martin said the budget would deliver a “significant tax package” that would particularly “look after middle-income workers and lower-income workers”.

He said it was important Government did all it could to reduce the pressure of the cost of living on workers and on families.

“Because cost of living is still a very significant issue for people out there, because of the impacts of the Middle Eastern war and other global events,” he told reporters outside Government Buildings.