Colm
Tel: 01-6183196
BROPHY TD Minister of State at the Department of Foreign Affairs with special responsibility for Overseas Development Aid and Diaspora
BUDGET 2021 OVERVIEW Budget 2021 is the biggest investment in the history of the State, at a time when we need it most. It will protect the lives and livelihoods of our people and meet the challenges of Covid and Brexit. It will: Protect lives from the threat of Covid-19;
Safeguard livelihoods, protect jobs and businesses, and help the most vulnerable in uncertain times;
Invest now in public services and infrastructure for the future wellbeing of our country.
Supporting the Country through Covid-19 & Brexit A Budget 2021 package of nearly €18bn to support our citizens and key public services in the pandemic, to support the economy and to increase capital investment as per the NDP. There is nearly €8.5bn for Covid-related spending in 2021, including a €2.1bn contingency. The pandemic brought unprecedented challenges to our economy. We acted decisively to counteract it, with €24.5bn of support measures (14% of GNI*). Capital investment will increase by €1.6bn to €10.1bn in 2021, the highest in our history, implementing the NDP. Capital spending has a greater stimulus on the economy.
Safeguarding Livelihoods - A Significant Business Supports Package A ‘Recovery Fund’ worth €3.4bn will be established to ensure continued support for the economy, given the challenges of Covid-19 & Brexit. This fund gives us the opportunity to respond flexibly to support the economy as is needed, as the path of the virus unfolds. It will focus on infrastructure, reskilling / retraining and supporting investment and jobs. A new ‘Covid Restrictions Support Scheme’ (CRSS) to support businesses closed due to the virus, or turnover down by 80%. This will target badly impacted sectors such as food, accommodation and entertainment, and enable them to pay their fixed costs when closed. They will be paid 10% of their first €1m turnover, and then 5% up to €4m, via ‘Revenue’. Reducing the lower rate of VAT from 13.5% to 9% for hospitality and tourism sectors.
Other measures include: The Employment Wage Subsidy Scheme (EWSS) will be extended throughout 2021, in some form. The details will be adjusted to suit the economic conditions of 2021. €300m for a further commercial rates waiver, until the end of 2020. The self-employed can now earn €480 p.m. and still qualify for PUP; enabling businesses to trade to the extent that is possible for them. Increase in Earned Income Credit from €1,500 to €1650, for self-employed.
Protecting Lives through our Health Service The highest ever health budget of €22bn, an increase of €4bn. €2bn for covid-19, including contact tracing, testing, PPE, & expanded hospital capacity Build up permanent capacity in our health service -- 1,280 extra hospital beds; as well as 66 permanent critical care beds; and a further 1,250 community beds. Funding for Sláintecare public-only consultant contracts, and the National Cancer Strategy, National Maternity Strategy & National Trauma Strategy, to transform our health service. 100,000 additional inpatient and day-care procedures in 2021 €38m for our mental health strategy, ‘Sharing the Vision’. €100m for new disability measures; incl supports for 1,700 school leavers & respite services €5 million additional home care hours, on top of the 19 million in 2020.
Preparing for Brexit The Budget is based on the assumption of no trade deal with the UK. So from January 2021, bilateral trade between the UK and the EU will be on World Trade Organisation terms. The ‘Recovery Fund’ of €3.4bn will support the economy, as Brexit unfolds. This is on top of existing Brexit supports: €300m Brexit Loan Scheme for businesses up to 500 employees. Loans from €25k to €1.5m for up to three years and an interest rate of 4%. €800m Future Growth Loan Scheme for loan of €25,000 to €3m, for 7-10 years. Microenterprises can access loans of up to €25,000 from Microfinance Ireland through Local Enterprise Offices or directly through Microfinance Ireland.
Invest in Public Services Education -- €8.9bn budget; 2,100 extra posts for schools, incl an extra 990 SNAs & 400 other special education and special class teachers; reduce pupil-teacher ratio by one point to 25:1, 145 school building projects. Further and Higher Ed. -- €3.3bn budget; 10,000 extra upskilling & reskilling opportunities; additional 5,000 3rd-level places; 4,000 new apprentices; €270m for building projects; €20m for SUSI grants; increase in SUSI postgrad grant from €1,500 to €3,500. Justice -- An extra €200m; 620 more Gardaí to add to Garda strength of 14,500 by end 2020; with an additional 500 garda staff, and increased investment in the Garda Fleet. Elderly -- State Pension Age to remain at age 66 from January, at a cost of €220m. €5 increase p.w. in Living Alone Allowance to €19, paid to 221,000 pensioners, widows/ widowers and people with disabilities. Vulnerable -- Fuel Allowance increase of €3.50 p.w. to €28, for 375,600 households. €150 increase in Carer’s Support Grant to €1,850 p.a., benefitting over 130,000 carers. Increase to Qualifying Child Payment of €2 p.w. for under 12s, and €5 p.w. for over 12s. Christmas bonus for welfare and PUP recipients in 2020. Arts & Sports -- €50m more Arts Council funding; €50m support for Live Entertainment; €36m for Sports Ireland.
Housing The total housing budget in 2021 will be over €5 billion. An additional 15,000 HAP tenancies and 800 RAS tenancies. HAP expenditure is now over €558m supporting over 67,000 tenancies. An extra €500m, to a total €2.8bn, for 12,750 new social homes in 2021 (9,500 new build) €110m for affordable housing and cost rental schemes. Extended Help to Buy scheme for another year; it has already helped over 20,000 buyers. €22m extra for homelessness programmes, incl. additional beds & Cold Weather Initiative.
Carbon Tax increase of €7.50, from €26 to €33.50 euro per tonne of CO2 emission. €100m of this tax revenue will go to improve the energy efficiency of our homes. €1bn extra on public transport (BusConnects, MetroLink, DART, greenways & local projects)
Tel: 01-6183196 · Email: colm.brophy@oireachtas.ie @brophytalks ColmBrophyFineGael Colm Brophy TD working with Cllr. Baby Pereppadan, Cllr. David McManus, Cllr. Brian Lawlor & Frances Fitzgerald MEP
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