October 20, 2020
Business News

Budget 2021 at a glance: Key measures of record €17.75bn spending package and how it affects you

Finance Minister Paschal Donohoe today unveiled the largest Budget in the history of the State.

Almost half of the record €17.75 billion spending announced in Budget 2021 will go on Covid-19 supports.

Here is a summary of the key points of the unprecedented almost €18 billion budget announced today.

Budget 2021 at a glance:

– No major income tax changes in 2021;
– Extra child benefit and rises for the living alone and fuel allowances;
Christmas bonus will be paid to all social welfare and most Pandemic Unemployment Payment recipients;
– Motorists face hike in fuel prices as carbon tax increases from midnight. VRT tax breaks for green vehicles, but higher rates for polluting cars;
Help-to-buy scheme extended until end of 2021;
Price of cigarettes to go up by 50 cent but no additional tax slapped on alcohol;
– Crisis-hit hospitality and tourism sectors to benefit from VAT rate cut to 9% from November 1;
Employment Wage Subsidy Scheme will be extended;
– Businesses badly hit by Level 3 or higher restrictions can avail of a new Covid Restrictions Support Scheme (CRSS) weekly payment of up to €5,000;
– €3.4bn been set aside for a Recovery Fund. Further €1.6 billion allocated for capital spending;
– A further €4 billion for health spending, including PPE and extra hospital beds;
Rise in pension age to 67 on 1 January 2021 has been scrapped;
Living Alone Allowance to increase by €5;
Fuel Allowance up €3.50 per week;
Carer’s Support Grant up €150 per year.

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