GUIDE: What to expect from Budget 2023

Free school books for primary school children and changes to the 40% tax band are expected to be part of Budget 2023 due to be presented by the Minister for Finance. 

Minister Paschal Donohoe will give a speech detailing next year's Budget at approximately 1pm tomorrow (Tuesday September 27) alongside the Minister for Public Expenditure and Reform, Michael McGrath, who will present his own speech at 1.45pm. 

The forthcoming Budget is expected to include, among other changes, an increase to the salary at which people pay the top rate of tax. 

The higher 40% tax rate currently applies to single people on incomes over €36,800, married couples/ civil partners with one income of €45,800, and married couples/ civil partners with two incomes up to €73,600. 

A change of approximately €3,000 is being considered. 

Free school books are also expected to be introduced for children in primary schools, however Labour education spokesperson Aodhán Ó'Ríordáin has demanded the Government includes secondary school pupils in a new free book scheme as part of the Budget. 

Proud of our @labour campaign for free schoolbooks which we’ve consistently called for every budget cycle.

We’ve put this measure at the top of the education agenda and it’s finally coming to fruition.

We’ll wait to see the details tomorrow but this is a positive move. https://t.co/x19UQFEvvw

— Aodhán Ó Ríordáin (@AodhanORiordain) September 26, 2022

In a statement released today, he said, "All school books should simply be free. We estimate the annual cost of this would be €85 million across our entire school system. We have an opportunity in Budget 2023 to provide this for families and make a real impact.

"Hard working parents can’t cut back any more. Families are struggling and they need a break and assurance that this government will give their child every opportunity to thrive, regardless of their economic circumstances." 

According to RTÉ, an increase in social welfare payments can also be expected. 

The Minister for Social Protection, Heather Humphreys, did not commit to a particular figure, but reportedly dismissed the idea of a €20 increase to core social welfare payments. 

However, Labour social protection spokesperson, Seán Sherlock, has demanded Government meet the rate of inflation and provide the increase. 

Speaking in advance of Budget 2023, Deputy Sherlock said, "The usual pre-Budget kite flying continued in earnest over the weekend and many people will have been deeply concerned to hear the Social Protection Minister slam the idea of a €20 increase in social welfare payments. Those on fixed incomes need support this winter, support that matches the reality of the cost of food, the cost of sending children to school, of transport and of heating. 

"There can be no excuses from government. Labour is demanding a €20 increase in social welfare payments starting immediately, and a double payment in October and December. Rising prices for food, energy, housing and essential household items are massively squeezing those on fixed incomes. In a country as wealthy as Ireland no family should go hungry." 

Other measures expected to be introduced for next year's Budget includes a decrease in childcare costs, electricity credits of approximately €600 (spread over two or three bills), a tax credit for renters, and an extension of the Help-to-Buy scheme. 

Minister for Justice Helen McEntee has also reportedly secured funding for 800 more members of An Garda Síochána next year, which will bring force numbers up to almost 15,000 sworn members. 

Speaking yesterday (September 25) on The Week in Politics, Minister of State Hildegarde Naughton said Budget 2023 will focus on "protecting families, protecting the most vulnerable and ensuring working people can keep more of their own hard-earned money". 

Minister of State @1Hildegarde says a substantial intervention will be seen this Tuesday as the government roles out its #budget2023. Says the budget will be focusing on protecting families. pic.twitter.com/XjbbwuGw0s

— The Week in Politics (@rtetwip) September 25, 2022

She said, "We have a four to five billion euro surplus. We are sharing the same crisis that other countries across the European Union and the world are facing but Ireland is in a very positive position in that we have surplus. Many countries do not. And that is as a result of people working hard, businesses working hard throughout the country and the prudent management of our finances which allows us now in this budget to do a lot more to protect all those people that you have mentioned there - the vulnerable people, people on social welfare - and also people working hard who find they are not eligible for many supports out there.

"What we want to do is ensure work pays, and that we're looking after those who are working hard, raising a family, commuting to work and encountering all other bills like mortgages, having to do their weekly shop. So to protect as many people as we can right up in the coming weeks and months ahead, particularly up to the winter period, throughout that period."  

In a video published on social media this morning (September 26), Minister Donohoe said Budget 2023 "will help with the cost of living, the right budget for our country and for our economy and for our society". 

During a Dáil debate on September 22, Minister Donohoe confirmed a distributional analysis of the Budget will also be published on Budget Day. 

This includes a document on quality-of-life indicators and analysis of the progressivity of the tax system, green budgeting, equality budgeting and well-being metrics. 

He said, "The distributional analysis will be undertaken using the ESRI’s SWITCH tax-benefit model, which will be used to analyse the impacts of direct tax and welfare measures. This will be combined with analysis from a model jointly developed by the Department of Finance and the ESRI to examine the impacts of indirect taxes.

An update on #Budget2023 from Government Buildings

For a behind the scenes look at what happens follow me on Instagram @paschalthetd pic.twitter.com/Tgv8PqlrLF

— Paschal Donohoe (@Paschald) September 26, 2022

"I confirm again to the House that the budget the Minister for Public Expenditure and Reform, Deputy McGrath, and I will present on Tuesday will aim at responding to the cost-of-living challenges that we know so many are facing at the moment and will build on the measures implemented earlier in the year." 

All Budget 2023 reports - publications on tax policy changes, economic and fiscal outlook, and expenditure - will be available online for viewing once Budget details are announced on Tuesday.