General News / October 13, 2020

Here are the main take away points from Budget 2021

General News / October 13, 2020

Here are the main take away points from Budget 2021

Katie Gartland

The government has announced the biggest budget in the history of the State. Amid the Covid 19 pandemic and the onset of Brexit, the Budget has been written in anticipation of no Coronavirus vaccination in 2021 and a no-deal Brexit.

Here are some of the most important points we’ve taken from it: 

13:07- Key points of the budget include more homes, better healthcare and better infrastructure for climate change.

13:13- The country’s unemployment rate is expected to decline slowly throughout next year. 340,000 jobs are expected to be lost, mostly hitting young people.

13:16- A deficit of €20.5 billion is expected for 2021.

13:19- The government’s Rainy Day Fund if €1.5 billion will be utilised for the 2021 Budget.

13.20- The total budget will be €17.75 billion, the largest budget in the history of the State.

13.23- €30m will be given to funding enterprise and businesses in Ireland.

13.25- The self-employed can push back their tax until next year without interest

13.25- The government will approach the EU for funding of €2.5 billion for the Temporary wage employment scheme.

13.27- The Covid Restrictions Support Scheme to provide targeted support for businesses in the arts. It will operate during level 3 or higher restrictions. The government will support businesses based on their average turnover from 2019. It will be effective from today until March 2021. It will support businesses in food, arts, recreation and entertainment.

13.30- The standard rate of VAT will be reduced from 13.5% to 9% in hospitality.

13:34- There will be no income tax increase, that includes USC and PRSI.

13:36- The Help To Buy Scheme will be continued into next year. It aids first time buyers afford houses.

13:37- Carbon tax will be increased by €7.50 by tonne of carbon fuel. It aims to reach €100 per tonne by 2030.

13:40- There will be lower VRT rates for lower emission cars.

13:41- A 20-pack of cigarettes will go up by 50c in tax. A pack now costs €14.

13.49- Minister Paschal Donohue concludes the 2021 Budget by paying tribute to the heroes and essential workers during the pandemic.

13:57- Public expenditure will increase by €17.4bn over and above what was planned for 2020 pre-Covid.

14:02- An extra €4 billion will be made available for health services.

14:03- 321 critical care beds made available by the end of 2021.

14:05- €38m to be made available for mental health services.

14:10- €5.2 billion for Dept of Housing – increase of €773 million in 2020.

14:11- €500m for capital expenditure on housing for 9,500 new social housing units in 2021

14:12- “Tackling homelessness is a priority for this government.” €110m for affordable housing package for affordable and cost rental

14:15- Increased emphasis on digital upskilling. Funding to support 10,000 upskilling and reskilling opportunities, as well as for 4,000 new apprentices.

14:16- €1.1b made available for Dept. of Enterprise, supports include credit guarantee scheme and development of R&D.

14:20- €50m for live entertainment supports and Arts Council funding to increase to 130m.

14:22- An additional €1 billion euro for public transport in 2021 – towards projects such as BusConnect, MetroLink and the greenway programmes.