Govt's €9.4BN budget amid tariff threat

THE Government is set to bring in €1.5 billion of tax cuts as part of next year's budget, according to the Summer Economic Statement.

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The Budget Day package, set to be announced on October 7, will be €9.4billion. This will comprise spending of €7.9 billion and taxation measures amounting to €1.5billion.

A plan to cut VAT for hospitality to 9% is predicted to cost up to a billion euro for a year, which is around two-thirds of the €1.5billion euro tax package.

Overall spending across current capital will increase by 7.3% for next year.

However, Minister for Finance Paschal Donohoe warned that the figures published yesterday are based on "a no-tariff scenario" imposed by the US.