Leo Varadkar (Dublin West, Fine Gael) | Oireachtas source

We on this side of the House - Fine Gael, the Independent Alliance and Independents - believe in improving living standards for people who work hard, get up early in the morning, work at night, and work weekends and shift work because we believe that work should pay, and we make no apologies for saying so. It is one of our objectives and part of our value system. Moreover, because we believe that work should pay, we want everyone, including those on low and middle incomes, to benefit through pay incentives, tax reductions and cheaper access to public services.

In the last budget, we reduced the USC. In this budget, we are taking further steps to reward work and attain a sustainable increase in living standards. The threshold for payment of the higher rate of income tax is being increased by €750 while the 2.5% and 5% USC rates are being reduced. Self-employed people also benefit from a further increase of €200 in the earned income tax credit and stay-at-home parents have their tax credit increased for the second year in a row.

We are responding to the needs of young families. Having introduced paternity leave for new fathers, we are also working to improve provision for both parents further, including extending paid maternity leave for mothers of premature babies. This is fully funded in budget 2018.

This year, we implemented a number of policies to expand access to child care for working families, including a universal child care subsidy open to all children aged six months to three years. In budget 2018, we are providing another €20 million to develop the free preschool programme further to ensure that the two-year service is available to all children from 2018. It is now open to children who are two years and eight months old. We are also increasing the family income supplement by up to €10 per week for low-income working families.

Free GP care has been introduced for children under six, as well as medical cards as a right for children with severe disabilities. The cost of prescription medicines is being reduced in this budget, for people and families with or without a medical card. Dental benefits, like the scale and polish, are being restored this month, as well as subsidised eye glasses and hearing aids.

We have a pay deal now to restore the pay of public servants, which has been agreed and is fully funded in this budget. The minimum wage has been increased for the second time by this Government of Fine Gael, the Independent Alliance and Independents.

Improving the living standards of middle Ireland - of people who work hard, who contribute to our society and our economy, those who get up early in the morning - is not achieved by a single action or a single budget. It is about sustained progress step by step: lower taxes; better pay; better conditions; and more subsidised public services. This budget is just another step in that direction.

The focus of the budget is on building a sustainable and resilient economy, but this only has meaning and value when it has tangible benefits for our people by rewarding work, protecting the most vulnerable and creating opportunity. I believe that, in this budget, our partnership Government with the Independent Alliance and Independent Ministers and Deputies has struck the correct balance between planning and preparing for an uncertain future, as well as improving the quality of life for our citizens. Our philosophy is simple: when we have it, we make it count. We do not squander it. We do not spend it for the sake of spending it. We invest it in the future. We spend it carefully because it is the people's money, not ours.

This budget provides the foundation stone for us to build into the long term. Individuals can plan for the future, as can their families, confident in the knowledge that our prosperity will be shared and sustainable. We have faith in the future because we have learned from the lessons of the past.

The budget reflects this Government's values and aspirations, and our partnership Government believes in making a difference in people's lives. We believe that, with the right values and aspirations, we can make a real difference. We know where we want to go. We are on the road. Budget 2018 is another small, sustainable, steady step on that road.

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