Cormac Devlin (Dún Laoghaire, Fianna Fail) | Oireachtas source

I welcome the opportunity to examine the main provisions of budget 2024. I commend my colleague, Deputy Michael McGrath, on the introduction of his first budget as Minister for Finance.

As noted, budget 2024 includes a spending package of €14 billion with a core spending and tax package of €6.4 billion, once-off cost-of-living measures of €2.7 billion and non-core expenditure of €4.75 billion for public services. The budget aims to support working families and people on fixed incomes while also promoting pro-enterprise policies to protect jobs. While inflation has eased since the peak last year, it still represents a challenge, particularly for households and businesses.

I welcome the cost-of-living package to support households and businesses, particularly the provision of three €150 electricity credits and the continuation of the 9% VAT rate on electricity and gas bills. This will help all households. The series of targeted lump sum payments for people in receipt of social welfare payments is particularly welcome. This will help families to meet the increased cost of living. The tax package will put €800 back in the pocket of workers. This is very welcome and necessary, as are the changes to the USC.

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I would like to single out the supports for families, particularly the extension of the free schoolbooks scheme to junior cycle, the double child benefit payments, child benefit being extended to 18-year-olds who are still in education, hot school meals being extended to 900 primary schools, 740 additional teachers and 1,200 special needs assistants, SNAs, and, of course, a 25% reduction in the cost of childcare. I called for many of these before the budget, and they are very welcome. Many young people will welcome the continuing 60% reduction in public transport fares for people aged 19 to 25. This was a policy I suggested back in 2020 and 2021. The increase in the national minimum wage is also significant and will help many younger people deal with cost-of-living challenges as they start out in the workplace.

While many of the measures to support enterprise are welcome, I was disappointed to see the restrictive terms of the increased cost-of-business grant, which was introduced by the Minister, Deputy Coveney. The threshold of €20,000 for commercial rates will hit small businesses that pay high rates, such as smaller supermarkets or hospitality businesses. These businesses have significant payroll costs that are going increase as a result of changes to the minimum wage. They are also being hit by input and energy costs. Many are struggling and some have closed, including at least two recently in my constituency. Up to 60% of pubs in Dublin, and many small supermarkets and shops, will be excluded if the scheme proceeds under the terms suggested. I ask the Minister and his officials to review the terms to ensure these businesses are included. Using the CSO definition of a small business, which is an enterprise with a turnover of less than €10 million and employee count of less than 50, might be a better definition than an arbitrary €20,000 commercial rates limit. SMEs are the backbone of our towns, villages and communities. The Government needs to support them, as it has done, with cost-of-living and inflation challenges over the past number of months.

I welcome the funding allocated for up to 1,000 new gardaí and to increase Garda overtime. Hopefully, this will help ensure more front-line policing and visible policing at that.

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