Ministers Noonan & Howlin arrive at Government Buildings for the traditional Budget photocall.

Budget 2015 the highlights

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Budget 2015 was unveiled this afternoon by Minister for Finance, Michael Noonan TD, and Minister for Public Expenditure, Brendan Howlin TD.

Key announcements include:

- A cut in the higher rate of income tax from 41 per cent to 40 per cent;
- A 25 per cent Christmas bonus for social welfare recipients;
- An increase in the entry level for the Universal Social Charge (USC) from €10,000 to €12,000, and the introduction of a new eight per cent USC rate to be levied on incomes over €70,000;
- A €5 increase in child benefit per child;
- A €9 weekly increase to the Living Alone Allowance;
- Water charges relief of up to €100 and income tax relief on water charges up to €500;
- An increase of €1,000 in the Income Tax Standard Rate band for single individuals and a €2,000 increase for couples;
- A decrease in the pension levy from 0.75 per cent to 0.15 per cent in 2015 before being abolished from 2016;
- The retention of the nine per cent VAT rate for the hospitality sector;
- The extension of the home renovation initiative to rental properties; and
- A 40c increase in the cost of 20 cigarettes.

Announcing the Budget, Minister Noonan said: 'The road we have travelled to get to this point has been very difficult and the Irish people have made major sacrifices, but the policies pursued by this Government have worked and the recovery in the Irish economy is well underway.'

He continued: 'Budget 2015 is about securing the recovery, building for the future and broadening it to families across the country. This Government will not be returning to the boom and bust model of the past that has spectacularly and repeatedly failed the Irish people.'

Meanwhile, Fine Gael TD for Meath West, Ray Butler, welcomed the decision to maintain the nine per cent VAT rate for services in the tourism and hospitality sector, which he believes will lead to further job creation in Co Meath.

'The reduced lower rate of VAT is worth €2,250 for every €50,000 turnover within the tourism sector and that is a significant boost in an industry which operates with tight margins,' he said. 'This increase in has enabled hospitality focused businesses in Co Meath to keep their prices low and, in doing so, attract more business which requires them to take on more employee.'

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