Education
Minister for Education Norma Foley is to bring down pupil teacher ratios to 25:1 with the creation of 600 new positions.
There will be a new €50 million fund to provide a once-off financial assistance to full-time third-level students. The measure is likely to be worth €250 to each student.
There will also be a €120 million package for reskilling and retraining including an extension of the apprenticeship scheme.
The Minister for Higher Education Simon Harris has also secured €30 million for research including for all-island research.
There will also be changes to post-grad supports and a minor capital works plan for third-level colleges.
There will be some welfare increases that will benefit parents too. An increase for a Qualified Child Payment will be part of Budget2021 – it will be raised by €5 per week for children over 12 and €2 per week for those under 12.
Tax
Mr Donohoe set out his stall when it comes to income tax when he said categorically there would be no rise. The unspoken other side of the equation is that there will be no cuts either.
Cuts to USC were promised but that was back in the pre-Covid days. In these straitened times the best that can be hoped for here is a tweak.
The same can be said for PRSI. Possibly a tweak here and there, possibly not.
It has become almost customary for the State pension to get €5 on budget day. This year could very well be the exception.
No commitment has been made either way on the Christmas bonus. However, it would be politically difficult not to pay it.
Reports indicate the carers grant will increase by €150 next year.
A rise in the price in cigarettes and other tobacco products is nailed on. Probably the only thing that is in Budget 2021. Alcohol is unlikely to to taxed further.
Commitments
One of the bumper announcements expected is a stimulus fund worth up to €5 billion to support the economy in the fallout of Covid-19 and Brexit.
It is expected the VAT rate for the hospitality sector will be cut from 13.5 per cent to nine per cent, as done during the last financial crash, in a boost for the struggling industry.
The Cabinet is to sign off on a new scheme which will offer businesses a grant of up to €5k a week if they have been forced to close or if turnover has dropped by 80 per cent.
It is anticipated there will be changes to how cars are taxed, with VRT rates lowered for new electric cars and low-emission petrol cars.
There will also be an increase in funding for the direct provision system.
Tusla, the child and family agency, is expected to receive a budget bump of close to €50 million, and an additional €100 million is to be provided across the disability budget.
Housing
Minister for Housing Darragh O’Brien’s affordability programme will cost €468 million. It will include €110 million to be split between affordable purchase measures, and scheduled delivery of cost rental in 2021.
The affordable purchase measures will be constituted as a shared equity scheme and will account for €75 million.
The details of this are still being worked out, and will be announced in the coming weeks.
However, it is understood that the Department is in dialouge with the pillar banks to put in matching funding, bringing the total to €150 million. This will also need State aid approval.
Some €35 million is being put aside for cost rental. The remaining €358 million is being split between existing schemes such as the serviced sites fund, the local infrastructure housing activation fund, rebuilding Ireland home loans and the Land Development Agency.
It is likely that the Help to Buy scheme will be extended. There is also likely to be a pot of €500 million for new social housing projects.
Health
About €1.6 billion allocated for new developments including additional beds and staff, as well new funding for mental health. There will also be additional funding for home care packages to keep people out of hospitals.
The HSE said at the weekend it was looking at the provision of about 20 additional ICU beds next year, and 125 more in 2022 to bring the total up to about 450.
Included in the new health budget will be about €1.3 billion to pay for testing and tracing for Covid- 19 and to meet the cost of procuring personal protective equipment.
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