BROUGHT FORWARD
Major Budget 2025 change as Jack Chambers confirms it will be EARLIER this year and ‘tighter’ than previous budgets
Chambers is keen to return to a more regular budget than what was rolled out during Covid
BUDGET 2025 will be brought forward one week this year, it has been confirmed.
Minister for Finance Jack Chambers said the new timing is the "natural date" to hold the budget due to ministerial European commitments the following week.
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However, the new Finance Minister dismissed claims that the new date is an attempt to clear the path for an earlier election.
Speaking to RTE's Morning Ireland, Chambers said the government is "absolutely committed" to running its full term.
Budget 2025 will now be held on Tuesday, October 1.
Yesterday, Chambers warned that the budget will be "tighter" than previous years and said he is keen to return to a more “regular” budgetary environment than what was previously rolled out during the Covid-19 pandemic.
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Chambers said: "On wider cost-of-living challenges, the current economic backdrop is that inflation has levelled at around two per cent, and we expect modified domestic demand to strengthen, which means the wage increases that households are experiencing should see real effect in economic terms through the year.
“The budget is really framed in a careful way. We’ll obviously set that out next week as part of the summer economic statement.
“But we’re clear that for many there are still pressures on households and on families and we want to make sure we strengthen living standards and support people through the winter period.
“What that mix might be is something we’re going to have to be careful about.
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“It’s going to be a tighter budget than what we’ve had through Covid and through very high levels of inflation.
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“I think we have to get back to a more regular budgetary environment, but through that and through sound economic management we still have the capacity to support people and improve living standards.
“That’s what we’ll be seeking to do in a progressive way in the budgetary process.”
Chambers and Minister for Housing Darragh O'Brien have backed a fresh increase to the Rent Tax Credit - the second in two years.
The credit - which can be claimed annually by around 400,000 renters - was increased in Budget 2024 to €750 for a single person and €1,500 for jointly assessed couples.
The cash scheme previously saw single renters get €500 back once they'd paid €2,500 rent in the specific calendar year, or jointly-assessed couples getting back €1,000 once they'd shelled out €5,000 in rent.
And thousands of renters could be owed the credit for previous years, with figures showing how countless payments have been left unclaimed, despite the payment being processed within around five days of claims being made.
But Ministers have hinted that the payment could be hiked again - possibly to €1,000 for a single renter and €2,000 for couples.
O'Brien said: "That's something that we will absolutely discuss and Minister Chambers and I have already said that we would like to see a further expansion of the renters' tax credit.
"Really importantly for renters, lots of renters want to buy.
"That's why we've scaled up the First Home scheme. We've invested an additional €80million this year, €40million from us, €40million from the banks, because lots of renters are now buying their homes by using the First Home scheme."