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Govt 'will not revisit' confidence-and-supply-agreement

A spokesperson for Taoiseach Leo Varadkar said the confidence-and-supply agreement will not be revisited
A spokesperson for Taoiseach Leo Varadkar said the confidence-and-supply agreement will not be revisited

The Government will not revisit the confidence-and-supply agreement with Fianna Fáil, a spokesperson for the Taoiseach has said.

This comes amid an escalating row between Fianna Fáil and Fine Gael over what form any budget tax cuts should take.

The agreement underpinning the Government says that reducing the 5% rate of the Universal Social Charge is a priority.

However, both Leo Varadkar and Minister for Finance Paschal Donohoe have expressed a preference for raising the entry point at which workers pay the higher rate of tax.

Fianna Fáil leader Micheál Martin has made it clear that there will not be sufficient resources to address both these issues in the budget.

A Government spokesperson said this evening nothing has been decided yet about the Budget and it is aware of Fianna Fáil's view.

It is understood that discussions between Fianna Fáil and Mr Donohoe will take place later this week.