When this Government was formed just over 18 months ago, no one could have predicted the scale of the crisis unfolding in the Middle East, the disruption it would place on global energy markets and its impact on the cost of living in Ireland and across the world. In these times, the value of a capable and stable Government became clear. This coalition must continue to provide certainty for households, protect our living standards and keep our economy on track. Fuel supports introduced to shield families and workers from surging prices at the pumps have been extended into the autumn. The focus must now turn to October’s budget and the decisions needed to protect people from external shocks, sustain our prosperity and strengthen our economy for the years ahead.
Independents supporting the Government helped to shape last year’s budget, with a strong focus on protecting the most vulnerable and securing meaningful, long-term benefits. Earlier this month, the largest-ever increase in the carer's allowance income disregard took effect. That is real progress, and we are committed to phasing out the means test entirely during the lifetime of this Government. The central question now is what budget 2027 will do for working people.
Last year, income tax bands and personal tax credits were left untouched. As wages rise to meet the growing cost of living, workers are being unduly punished by the tax system. The people in the squeezed middle, the workers who keep our economy moving, need a meaningful tax package in October that will allow them to keep more of their hard-earned money. People living with a disability continue to face unavoidable additional costs in areas such as transport and healthcare. I welcome the cross-Government work conducted over the past year that has looked at the possibility of a permanent annual cost-of-disability payment. Budget 2027 should move that commitment in the programme for Government from the discussion phase to delivery and the establishment of this permanent payment.
Inheritance tax must be reviewed. The current inheritance tax regime is penal and is not fair or equitable. Families should be able to pass on a home, farm or business without there being an excess tax burden. We must also look at how people without children can pass on an inheritance to nieces, nephews or close relatives without being disproportionately penalised.
Prudent management of our economy is the cornerstone of good government. While people are struggling with the cost of living, they are further infuriated to see public money wasted. This squandering of taxpayers' money is evident across all Departments, State agencies and local authorities.
