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McGrath says tax reductions in budget will be 'modest'

Fianna Fáil launched its budget submission today
Fianna Fáil launched its budget submission today

Fianna Fáil finance spokesperson Michael McGrath has said his party is still in negotiations with the Government on next week's budget.

At the launch of Fianna Fáil's budget submission, he indicated that tax reductions would be modest.

No decision has yet been made on revenue increasing options and social welfare increases, he added.

Mr McGrath also said that reducing the Universal Social Charge and raising the point at which people pay the higher income tax rate is costly. 

Fianna Fáil's spokesperson on public expenditure and reform, Dara Calleary, said the party favours rises in the State pension and payments to carers and those with disabilities.

He said they had not yet agreed on the level of increases.

Mr McGrath also said the Government is due to publish its report on the Help-to-Buy scheme on budget day and said the coalition's response should be consistent with its findings.

Meanwhile, Tánaiste and Minister for Business, Enterprise and Innovation Frances Fitzgerald has said next week's budget will aim to promote employment and boost investment in services to assist vulnerable people.

Speaking in Galway this afternoon, Ms Fitzgerald said the Government wanted to make sure as many people as possible benefited from the 2018 Budget.

She said supporting economic growth would be central to the initiatives being unveiled next Tuesday.

She said this would enable further investment in a range of services in the coming years.