While the counts are still going on, it is very likely that we will have a radically different style of Government this time out. While the numbers are not final, it is looking increasingly likely that we are going to get either a FF/SF majority government or a SF/Left minority government supported by FF in a confidence & supply. What will this mean to your pocket? We have pulled out some policies that would be likely from either of the above combinations:
- Renters will get some help – probably an increase in Tax relief
- Car and Home Insurance – removal of levies should reduce premiums a little but does not address the excessive claim culture
- Some increase in minimum wage – this will hit Irish employers and small businesses more than large multinationals
- In relation to promises to reduce pension age to 65 and pay restoration to Civil servants, these are unlikely as there is insufficient resources to fund these. Proposed tax increases will be spent elsewhere on public and health services.
- Pension Fund thresholds and Tax relief at higher rate will be under threat. Anybody with plans to boost their Private Pensions should act immediately
- Proposed changes to landlord legislation for the benefit of tenants will have an adverse effect on supply to the market, unless there is a matching commitment to social housing, which appears to be missing.
- The main issues will be balancing the spending promises with the lack of increases in tax to pay for these. Bearing in mind our exceptionally high National Debt hangover from the crash and Bank Bail-Outs, there is little affordability for further borrowing.
Let’s wait and see how things develop…..
