THE €505 MILLION FUEL package announced in the aftermath of nationwide fuel protests won’t have a material impact on government’s “budget arithmetic” for the time ahead, Tánaiste and Finance Minister Simon Harris said today.

Harris, who spoke this morning on Newstalk’s Claire Byrne Show, also said there would be tax cuts in the budget but he stopped short of detailing what that would be. 

The Finance Minister added that Ireland’s Exchequer surplus puts it in an advantageous position to be able to provide such relief.

“We’ve been able to put in place this temporary one-off targeted package using the surplus that allows us to stick to what we call our medium-term plan in terms of the budget, and it will allow us to deliver a plan that will both invest in public services in October’s budget, but also be able to try and reduce taxes on working people too,” Harris said.

He dodged questions on the upcoming budget, but said he accepted that if the energy crisis continues into the winter, “government can’t rule out any further interventions”.

There are also people who do not qualify for fuel allowance who he said are finding things “really tough”, and he said there will be efforts made to address this.

Asked about whether the government will be lowering the rate of the Universal Social Charge (USC), as was suggested by junior minister Christopher O’Sullivan at the weekend, Harris was less clear.

The Tánaiste said his priority is people who “play by the rules” but struggle regardless.

“They’re my priority in the budget, and we cannot approach a cost-of-living crisis by thinking the only answer is social welfare or subsidisation.

One of the things you can do during a cost-of-living crisis, one of the things you can do anyway to help make sure work pays, is allow people to keep a little bit of their own money.

“So there will be an income tax package, a personal income tax package.

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“The composition of it, what you do in the USC, what you do on thresholds, what you do on rates, what you do on tax credits, they’re all, as you’d expect, a matter for proper to detailed discussion across government,” he said.

Childcare

Separately, on childcare, Harris said: “I reiterate the commitment that I want childcare to be €200 per month per child in the lifetime of this government.”

He said he did not believe a State-headed childcare system was an overly practical approach and was mindful of the potential of overregulation.

“What I’d much rather see is the State work with providers and recognise that a parent will choose where their child is minded. I mean, it’s not my job to choose where your child is minded.

“It is my job though to make sure it’s affordable, and it is my job to make sure there’s capacity, and I don’t think there’s going to be just one size fits all.”