SIPTU branded Budget 2025 as an irresponsible attempt by the Government to buy the impending General Election and a recipe for long-term instability in our public finances.
SIPTU General Secretary, Joe Cunningham, said: “The Government’s budget is fiscally irresponsible and constitutes a return to the type of pre-crash giveaway budgets. Cutting taxes, increasing spending and balancing the books with transitory and unreliable corporate tax receipts is a recipe for long-term instability in our public finances. These measures will hollow out our tax base at a time of slowing growth. Tax cuts today will mean larger tax increases in the future as growth slows to 1% per capita in the years ahead.
“The reliance on temporary cost-of-living measures is cynical and only postpones the fall in living standards when these supports are withdrawn in the future. This is a ‘buy the election’ budget that leaves the next government to clean up the mess.
“The budget has the potential to drive up domestic inflation. Throwing money into an economy at nearly full capacity can drive up prices. House prices are likely to rise even more with the continuation of demand-led subsidies such as Help-to-Buy. Ireland has one of the highest living costs in Europe. This budget will only make this situation worse.
“At a time of rising poverty, with nearly a quarter of a million children living in deprivation, the cuts in inheritance tax are particularly disgraceful. This tax cut makes a mockery of equality.”
Cunningham added: “The Government is right to use once-off revenue to address our housing infrastructural deficits. However, we have labour shortages in the construction sector and additional expenditure without resolving this shortage can potentially bid up costs. We could end up with illusory targets and higher prices.”