Budget reaction

There has been a mixed reaction to Budget 25

The government has been accused of unashamedly buying citizens votes with their own money, has been hailed for delivering targeted supports to the most vulnerable and as the key to easing costs of green transition for farmers.

Maria Walsh MEP said it was the €2billion farming package was largest ever for the agricultural sector.

“While Budget 2025 is being hailed as a cost-of-living budget, it also contains a historically large package for the agricultural sector. This is a budget for farmers.

“For the first time ever, the total envelope for farmers will increase to over €2 billion. This investment will be key to easing farmers’ journey through the ongoing green transition.

“Along with financial support, farmers will also benefit from the inheritance tax changes secured by Fine Gael. This was a cornerstone of Fine Gael’s Budget 2025 policy and will offer significant relief to many farm families. A change to young trained farmers’ stamp duty is also included within Budget 2025, as is extending the test for agriculture relief to ensure only genuine farmers receive the support they need."

Meanwhile, the government has been accused of presenting a high-octane election budget unashamedly buying citizens votes with their own money by Aontu leader, Deputy Peadar Toibin.

"This is McCreevy Mark 2. Universal once off payments are more about raising poll ratings that lifting families out of poverty. Long term targeted supports lift families out of poverty. The reduction exclusively of the middle rate of USC as opposed to spreading the cut over the middle rate and the lower rate means that those on upper incomes will benefit significantly more," he said.

"In terms of infrastructure, it is waste as usual. The government will deliver less for more cost. Infrastructure projects are grinding to a halt while their budgets are ballooning.

"There is no sign of HSE reform, no talk of a recruitment freezes for senior management and administration in the HSE? No sign of tackling the Health €2.5bn compensation paid. There is nothing to indicate brakes that will be applied to budget waste at the OPW.

"It is interesting that without corporation taxes our budget would be in serious deficit. Fine Gael for years battled tooth and nail efforts to delete corporation tax loop holes and breaks. They also fought efforts to increase the rate of Corporation tax. Without these two steps our budget surplus would be much reduced and possibly close to a deficit.

"Last year the government made more from tax on fuel than every before. This budget saw another massive increase hitting commuters and homeowners. The electricity credit will be completely eroded by the increase in the PSO levy and the corporation tax."

Minister for Sport Thomas Byrne said Budget 2025 will deliver targeted supports to people, families and businesses to alleviate pressures caused by the increased cost of living.

"In Budget 2025 we are implementing measures to protect the most vulnerable in society, give families and households a break, safeguard the economy and prepare for the future.

“We want to cushion people, families, pensioners and businesses from the impact of inflation over recent years. That is why we are giving every household €250 in energy credits this winter.

“Fianna Fáil in Government has championed increases to the State pension and prioritised the well-being of older people and the most vulnerable. Budget 2025 sees a €12 rise in all weekly social protection payments and lowers the eligibility age for the Fuel Allowance from 70 to 66.”

Minister Byrne said Budget 2025 marks the most any Government has ever spent on housing. he said: “This budget sees the most any Government has ever invested in housing. Over 115,000 new homes have been completed since we entered government in 2020. We are guaranteeing the Help-to-Buy scheme will be in place to the end of the decade and for renters we are increasing the renters tax credit for both this year and next to €1,000 per renter to help them with the cost of rent.”

He said Budget 2025 builds on Fianna Fail’s reform of the healthcare and education sectors, while providing supports to low- and middle-income workers and SMEs.

“Budget 2025 prioritises those who need it most, offering significant income tax relief to help address ongoing cost-of-living pressures. Under Fianna Fáil, the average worker will be approximately €1,000 better off, thanks to a combination of income tax cuts and targeted cost-of-living supports.

Minister concluded: "Fianna Fail's Budget prioritises helping people, families and businesses with the increased cost of living, and increasing investment in housing, water, energy and key infrastructural projects will protect Ireland's progress and secure our future."

The Social Democrats have hit out at the "derisory five per cent increase in stamp duty on bulk purchases" which will continue to facilitate investment funds snapping up homes at the expense of first-time buyers.

Social Democrats housing spokesperson Cian O’Callaghan. said; “Budget 2025 was a golden opportunity to begin the radical change that is needed to fix the housing crisis. Instead, it contains a series of tokenistic half measures and one-off handouts.

“Nowhere is this clearer than the completely inadequate five per cent increase to the stamp duty on bulk purchases.

“There is no reason investment funds should be allowed to buy up housing estates. It benefits nobody but their own shareholders.

“The Government’s increased stamp duty introduced in 2021 gave the appearance of them taking action, but we know it has been utterly ineffective.

“Last year alone, the number of homes bought in bulk increased by 58 per cent. Clearly, investment funds are more than happy to fork out the extra stamp duty to buy up homes.

“The Social Democrats have called for the rate of stamp duty on bulk bought homes to increase to 100 per cent - this would act as an effective ban on the practice.

“This is not an extreme measure. Allowing existing homes to be bought in bulk drives up house prices, locks out first-time buyers and adds nothing to our overall housing stock.”

Eoin Clarke, Energy expert at Switcher.ie, said although USC cuts and tax boosts for working households have grabbed the headlines this year, another parcel of energy supports will provide relief for thousands facing fuel poverty this winter.

"Sadly, with energy credits reduced to €250 - a fraction of last year's giveaway - and energy bills still at record levels, the credit could be cold comfort for struggling households. Although energy rates continue to drop, they're nowhere near pre-crisis prices and the 9% VAT rate is only extended for 6 months.

"Nevertheless, the €300 lump sum for fuel allowance recipients will be a welcome boost for those who need it most. Support has now been extended to those in receipt of Carer's Allowance, so carers and over 70s should check if they qualify and apply as soon as possible because payments can't be backdated."

Inclusion Ireland has said that while Budget ‘25 has brought short-term progress in education for disabled children, it is at the detriment of long-term reform of a system which is failing them.

Derval McDonagh, CEO of Inclusion Ireland, said: “Investing in a strategic plan means moving away from reactive, short-term fixes. This budget won’t cut the mustard when 74% of our parents are telling us their children need schools to be completely reformed. Children are struggling in school today to get the support they need, while families fight to get access to what should be basic rights for their child.

“We welcome additional investment in education and increases to disability allowances. However, for 7-year-old Chloe, one of our members who has faced so many barriers these past 23 schooldays and has yet to access her local school, this budget will make no difference to the next 157 days of the school term. The 45% of disabled children who face similar barriers need an inclusive system which supports them appropriately as they go to school with their siblings and neighbours.”

She added: “Long-term investment is not just the right thing for Government to do - it can also help alleviate some of the barriers people with an intellectual disability face later on in life; low employment rates, living in poverty, limited independent living options.”

“Children need therapy in schools, reduced class sizes and CAMHS-intellectual disability teams to support their mental health before crisis point. We need a system in which adults are upskilled in rights-based, relationship-centred training.”

The Vintners’ Federation of Ireland (VFI) has expressed grave disappointment and frustration with the Government’s Budget announcement, which offers no reduction in VAT or excise duty for the pub sector. Despite calls for support from publicans across the country, today's measures fall disastrously short of what is needed to protect a sector on the brink.

The Government has instead proposed a series of minor supports, but these are largely irrelevant to the core issue facing publicans, which is the rising costs of business. The VFI is sounding the alarm that these insufficient measures will push many pubs to the breaking point.

Speaking about the Government’s inaction, VFI CEO Pat Crotty states: "The Budget is a disaster for our sector. We have been clear with the Government about the immense pressure pubs are under, yet they have failed to deliver any meaningful support. Every minister and TD fully understands this Budget will lead to closures for a huge number of businesses across the county. The Government’s own report from earlier this year accepts that many of the policies introduced to improve working conditions will increase operating costs for businesses.

“For pubs to survive our members needed to hear that VAT would be lowered to 9% along with a reduction in excise duty. What’s worse, the minor supports Government is offering are nearly useless when you consider the soaring cost of doing business. Pubs are already closing their doors, and this Budget will accelerate that trend."

The Irish Hotels Federation expressed deep disappointment with Budget 2025, saying the Government has failed to respond in any meaningful way to the commercial crisis facing hospitality food-led businesses. IHF President Michael Magner says: “The Budget does next to nothing to address the enormous challenges confronting our sector while at the same time imposing further costs on thousands of hospitality businesses.”

“The decision not to reduce the hospitality VAT rate is short-sighted and extremely concerning given the stark commercial environment that food service businesses are operating under throughout the country. These businesses are facing a perfect storm as they grapple with rising costs, the impact of the 13.5% VAT rate and very tight margins. It is becoming increasingly clear that Government policies are now fundamentally at odds with the long-term interests of our sector and wider tourism industry.”

Deputy Fergus O’Dowd, has said Budget 2025 will put more money back in people’s pockets at a time when they need it most.“Under the guidance of Taoiseach Simon Harris, this is a Budget that delivers as we are cutting costs for families by providing two double child benefit payments to every parent in the country before Christmas, providing free schoolbooks for senior cycle students, cutting college fees by €1,000, increasing maternity, paternity and parental benefit by €15 a week. In addition, there will be a baby boost payment of €460 for every child born after January 1st,” O’Dowd said.

“This government is ensuring that those who need the most help get it. Every pensioner will receive an increase of €12 in their pension. There will be an extension to the fuel allowance to help more people qualify and an automatic companion pass for people aged over 70. We know bills are expensive for you so there will be two energy credits worth a total of €250 before Christmas. Reduced costs for public transport will be extended for 12 months and free public transport to children aged under 9.

“This budget has increased the point at which people pay the higher rate of tax from €42,000 to €44,000. We are cutting the USC by 1pc on incomes between €25,000 to €70,000. Consequently, a single person on an income over €50,000 per year will pay €859 less this year in tax compared to last year. Changes now mean a full-time worker on €56,000 will get €916 in tax savings. In addition, you can now also get €1,500 tax free from your employer in a voucher up to five times a year.

“Housing is the biggest issue facing us and ensuring everyone has an opportunity to own their own home and this housing budget is being boosted by €3bn from the sale of AIB shares which will go to the Land Development Agency, upgrading water and energy infrastructure. This combined funding will lead to 6,400 new affordable and cost rental homes including 2,000 homes under the First Home scheme. We’re extending Help to Buy until 2029 – offering €30,000 in support to first-time buyers."

AsIAm, Ireland’s Autism Charity, welcomed some of the measures in Budget 2025 but was concerned that the budgetary measures fall short of what is expected and what is needed for the Autistic community and families in Ireland today.

"While the Government recently published the Autism Innovation Strategy, Budget 2025 was a missed opportunity to strategically prioritise the actions set out within the Strategy, and the recommendations of the Joint Oireachtas Committee on Autism.

"Measures such as the increase of €12 in Disability Allowance, Carers Allowance and Domiciliary Care Allowance fall well short of giving our community the same chance. We hear from Autistic people and families across Ireland of having to navigate long waiting lists for assessment, lack of access to school places and transport, wellbeing and social exclusion, lack of opportunities to live independently in the community, and to belong and be included in society as they are."