Ireland: No income tax cuts for workers due to Brexit threat, warns Finance Minister Paschal Donohoe - PressFrom - United Kingdom
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IrelandNo income tax cuts for workers due to Brexit threat, warns Finance Minister Paschal Donohoe

19:00  11 september  2019
19:00  11 september  2019 Source:   independent.ie

Donohoe says he 'won't make the mistake' of tax cuts in Budget 2020 given no-deal Brexit risk

Donohoe says he 'won't make the mistake' of tax cuts in Budget 2020 given no-deal Brexit risk “We won’t make the mistake of decreasing the tax the one day and having to increase it the next,” the minister said.

Minister for Finance Paschal Donohoe with Robert Watt (left) secretary general at the Department of Public Expenditure and Reform, and John Mr Donohoe indicated that tax cuts may have to be shelved if there was a no-deal Brexit . Such a scenario would also see the Government’s planned

Speaking to the Irish Sun, Finance Minister Paschal Donohoe explained he has been in talks with the EU about rescue funds for the hardest hit people in Ireland if a no deal Brexit Minister Donohoe has prepared a special budget for next year with two different pathways that the Government can go down

No income tax cuts for workers due to Brexit threat, warns Finance Minister Paschal Donohoe © Naoise Culhane Photography Finance Minister Paschal Donohoe. Photo: Naoise Culhane

INCOME tax cuts in next year’s budget have been ruled out by Finance Minister Paschal Donohoe.

In a break from tradition, Mr Donohoe has confirmed there will be no scope for changes to personal taxation a full month before Budget Day.

Ministers have agreed that the Budget will be prepared on the assumption that we are heading for a disorderly Brexit.

Across the board increases to pensions and other social welfare payments, as occurred in recent years, have also been ruled out.

Instead Mr Donohoe will look to make ‘targeted’ increases in areas affected by the fallout from Brexit.

'No-deal Brexit budget' on the way as finance minister set to update Cabinet today

'No-deal Brexit budget' on the way as finance minister set to update Cabinet today Finance Minister Paschal Donohoe is to update Cabinet today on how Brexit will impact on Budget 2020.

Paschal Donohoe : 'We are genuinely at a fork in the road as a country from an economic point of view as we face a Brexit challenge' © Bloomberg. The no-deal plan assumes Mr Donohoe will divert €700m that would otherwise be available for spending increases or tax cuts to increase welfare

Finance minister Donohoe admits economy would suffer but says backstop must stay. Paschal Donohoe unveiled finance ministry forecasts that warn of slower growth But projections suggest a no-deal Brexit would cut Ireland’s GDP growth from an estimated 4.2 per cent this year to 2.7 per cent.

No income tax cuts for workers due to Brexit threat, warns Finance Minister Paschal Donohoe © Catalyst Images LONDON, ENGLAND - AUGUST 06: Irish finance minister Paschal Donohoe arrives at number 11 Downing Street ahead of a meeting Chancellor of the Exchequer Sajid Javid on August 06, 2019 in London, England. (Photo by Leon Neal/Getty Images)

"Given the uncertainty and lack of clarity regarding the timing and format that the UK's exit will take, preparing for a no-deal scenario is the most sensible approach," Mr Donohoe said.

The Government expects to have €2.8bn extra available next year on foot of a growing economy.

However, €2.1bn of this has already been pre-committed to expenditure measures including public sector pay increases.

As a result Mr Donohoe will have €700m for new tax initiatives and spending increases.

Duty-free shopping for passengers travelling between Ireland and UK to return in event of no-deal Brexit

Duty-free shopping for passengers travelling between Ireland and UK to return in event of no-deal Brexit Duty-free shopping for passengers travelling between Ireland and UK to return in event of no-deal Brexit

UK finance minister warning Brexit could mean tax hikes, spending cuts . "Quitting the EU would hit investment, hurt families and harm the British economy," he was due to say in a speech on Wednesday. "I would have a responsibility to try to restore stability to the public finances and that

Minister for Finance Paschal Donohoe has hinted he may refrain from tax cuts and consider increasing taxes to dampen price and wage pressures in In an interview with the Financial Times, Mr Donohoe said he had to ensure government spending “doesn’t accelerate economic overheating”.

No income tax cuts for workers due to Brexit threat, warns Finance Minister Paschal Donohoe © Catalyst Images Close-up view of unrecognizable man counting money. Horizontal composition. Studio shot. Image developed from RAW format.

Speaking after a Cabinet meeting, he said the majority of it would be used to “support parts of the economy” most impacted by Brexit.

These are likely to include the agriculture and tourism sectors.

Mr Donohoe said there is “a case” for reducing income tax on middle income workers in order offset the impact of Brexit, but “I’m not going to do that”.

He said money would be needed to deal with potential growth in unemployment.

No income tax cuts for workers due to Brexit threat, warns Finance Minister Paschal Donohoe © Catalyst Images Euro coins and banknotes

“A no-deal Brexit will have profound implications for Ireland on all levels. These include macroeconomic, trade and sectoral challenges, both immediately and in the longer term.

“A crucial policy response is to build up our capacity to respond to these challenges.

"This is why the Government is prioritising reducing public debt, establishing a Rainy Day Fund and avoiding pro-cyclical budgetary policies. While there are risks ahead there are also opportunities; our goal is to position our economy to minimise these risks and to maximise the opportunities that lie ahead,” the minister said.

Pressure mounts on Donohoe as FF also backs plan to hit 'cuckoos' with levy

Pressure mounts on Donohoe as FF also backs plan to hit 'cuckoos' with levy Fianna Fáil has signalled its backing for a plan to hit so-called 'cuckoo funds' with a levy when they purchase blocks of new houses and apartments. 

Projections published by Minister for Finance Paschal Donohoe also show the unemployment rate could rise by 2 per cent if Britain leaves the He said a no-deal Brexit would be a “considerable challenge” to Irish agriculture. Mr Donohoe brought a memo to Cabinet on Tuesday on the economic

Minister in podcast interview warns of reduced scope for spending increases and tax cuts . Minister for Public Expenditure and Reform Paschal Donohoe during an Irish Times Business Podcast A UK vote next week to leave the EU may reduce scope for spending increases and tax cuts due to the

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