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Thursday 19 October 2017

Anglo savings will help ease Budget

Michael Brennan

Michael Brennan

TANAISTE Eamon Gilmore highlighted the potential to use savings from the Anglo promissory note deal to reduce the pain of the Budget.

He has come out in favour of reducing the €3.1bn target for tax increases and spending cuts, and specifically highlighted the prom-note savings – which amount to €1bn over two years.

"I think the fact that we have got the deal on the promissory note does provide us with some room for movement," he said.

Although he declined to go into any specifics, Mr Gilmore said the Government had to bear in the mind the huge burden people had borne over the past five years.

"I think what we need to concentrate on is how we can provide some relief from that for families and households who are stretched.

People who are paying the bills and trying to keep going and find at the end of the week there is nothing left after everything has been paid," he said.

It is another sign that the Government is planning to ease off on austerity – after five years of tough Budgets. The Government has not yet decided if the €3.1bn Budget target will be maintained.

But Finance Minister Michael Noonan has told the Cabinet there is scope to reduce the figure by €1bn if taxation increases by 1pc and public spending drops by 1pc.

Irish Independent

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