Increased Spending And Tax Cuts Announced in Budget 2025

Finance Minister Jack Chambers and Public Expenditure Minister Paschal Donohoe announced key measures, including:

• An 80-cent increase in the minimum wage, aiming to improve earnings for lower-income workers.
• A new 3% entry rate for the Universal Social Charge (USC) to ease tax pressure on lower-income earners.
• The Help to Buy scheme for first-time buyers has been extended until 2030, aimed at facilitating access to newly built homes and apartments.

A substantial €3 billion Infrastructure Fund was also introduced:

• €1 billion of this fund will be allocated to Uisce Éireann (Irish Water) for water infrastructure.
• €1.25 billion will go to the Land Development Agency to scale up housing projects.
• €750 million has been set aside for EirGrid to enhance energy infrastructure.

Additionally, the 9% VAT rate on gas and electricity has been extended for another six months, until April 30, 2025, as part of efforts to mitigate rising energy costs.

There are some contentious elements of the budget as well. The cost of a pack of cigarettes will increase by €1, bringing the price to €18.05 for the most popular brands.

However, the hospitality sector expressed disappointment. Both the Vintners' Federation of Ireland and the Restaurants Association of Ireland criticized the budget for not reducing the VAT or excise duty in their sectors, with the VAT rate for pubs remaining at 13.5%. Enterprise Minister Peter Burke had been pushing for a lower rate for restaurants, but no change was made.