Budget 2023 demands: Independents seek social welfare hikes and zero-interest retrofitting loans

Free public transport for students, 0 per cent loans for home retrofitting, social welfare increases and tax relief for workers will be among the demands of Independent TDs when they meet Ministers Paschal Donohoe and Michael McGrath for pre-budget talks this week.

The shopping list from the Regional Independent Group comes at a time when the Government has lost its Dáil majority. The group’s convener, Roscommon-Galway TD Denis Naughten, said some of their proposals would have to be reflected on September 27th if the Coalition wants their support.

Government numbers currently stand at 79, one short of a Dáil majority, although it comfortably survived a no confidence motion in July, in part with votes from some members of the group.

The loss of the majority is likely to be temporary as Green Party TDs Neasa Hourigan and Patrick Costello are due to return to the Coalition fold in November. However, there will be key Dáil votes – including on Budget 2023 – before then. Keeping Independent TDs onside by taking some of their spending suggestions on board would insure against any further unforeseen loss of Government TDs.

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Mr Naughten said the eight members of the group “live in the real world” and know not all of their proposals will be adopted. But he added that “we will need to see some of that reflected in this year’s budget if the Government wants our support”. He added this was “not a threat”, saying it has good relations with Mr Donohoe and Mr McGrath and has gotten proposals over the line in previous budgets.

Among the group’s suggestions are free public transport for third-level students and apprentices, a State-sponsored loan scheme with 0 per cent interest rates to help households bridge the gap between State grants for deep home energy efficiency retrofits as a climate action measure.

Mr Naughten said they are seeking the removal of barriers to people going to work, including removing an “anomaly” where people are less well off when they enter the €18,300 to €22,000 salary range due to the additional PRSI they pay. They also want a change in the income tax bands to ensure it pays for people to go to work and an increase to social welfare payments.

Mr Donohoe and Mr McGrath are also set to meet business organisations including Chambers Ireland, Retail Excellence and Ibec later this week.

Chambers Ireland chief executive Ian Talbot told The Irish Times that funding needs to be put in place for the delivery of homes in accordance with National Development Plan targets, and that the Government needs to address the skills shortage in the workforce, not just in the hospitality sector but in areas like engineering.

“It’s always good they’re listening,” he said of the engagement with Ministers, adding that executives from various companies would be involved in the meeting.

Duncan Graham, managing director of Retail Excellence, said the budget should include a VAT reduction to 21 per cent and supports around energy costs for small operators, who could see their models become unsustainable due to high electricity prices this winter.

It is understood Tánaiste Leo Varadkar has not yet abandoned efforts to bring in a 30 per cent income tax rate, which could benefit up to a million workers, despite resistance from Fianna Fáil and the Green Party. The Sunday Independent reported that he told a Fine Gael meeting over the weekend that he would keep pushing for the measure while also saying that tax relief for middle-income workers could also come through changes in the tax bands.

Mr Varadkar last week said that the 30 per cent rate would be discussed in Government ahead of the budget.