Budget hits middle income couples most
THE already hard-pressed city business community has expressed acute disappointment that there was no reduction in VAT in this week’s Budget.
And families are concerned that their incomes will be slashed by thousands of euro as a result of increased levies.
“We had expected that they would reduce VAT, which would have been a help to so many struggling businesses,” Maria Kelly, chief executive of Limerick Chamber, told the Post..
Describing the Budget as “tough”, she said, if it restores confidence in the international markets, it will send out the message that the country is getting itself out of trouble and that they can do business with us
“Another aspect to be welcomed is the establishment of the enterprise stabilisation fund of 50 million euro for this year and 50 million in 2009, and thankfully, PRSI has remained unchanged, which is a help to employers as they strain to retain staff”.
Fine Gael’s Deputy Kieran O’Donnell accuses the government of going after the hard pressed family to pay for their mistakes.
“This means 4,600 euro a year for the average family, which is crippling – they are targeting the low and middle income families and bailing out the banks”.
Deputy Jan O’Sullivan’s asserted that the sector hardest hit are those on lower incomes.
“Take a couple with two children and one salary of 30,000 euro annually – they will lose, on average, 1,900 euro a year through the income levy and loss of child relief, yet the Budget has failed to sufficiently hit people at the top of the income ladder, and it hasn’t closed the loopholes where people are avoiding tax,” she said.
“I’m also concerned about their intention of taking over the toxic loans – there will be loans on properties in all corners of the world. And at a local level, there’s very little in terms of job creation and protection. With funding for capital projects
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slashed, there’s a lot of concern regarding the city’s regeneration programme”.
One of the city councillors who has to face the electorate on his local election campaign is Fianna Fail, former Mayor of Limerick, John Cronin, who admits he is “disgusted that they’ve cut the Christmas bonus for social welfare recipients.
“That was not necessary but the country comes first and the government has done the best they can,” he told the Post.
“I certainly don’t believe that ministers out of office should get pensions,” he added.
More people than ever will now be seeking assistance from St Vincent de Paul, according to a spokesperson for the charity.
“The problem is, will we need more money to help them and there’s the concern that people will resort to borrowing.
“We welcome the introduction of the early childcare year, this is good, particularly for poorer children but rent supplement has been hit – some families will be down between 15 and 30 euro a week:.
