Big cuts in excise duties on alcohol have been announced in the Budget.

Duty on beer and cider falls by 12 cent, while there is a 14 cent drop in duty on a half-glass of spirits. A bottle of wine falls by 60 cent.

He said he expected the drinks industry to play its part in making prices more competitive. Mr Lenihan warned that he would reverse the decision if the cuts were not passed on to consumers.

The top VAT rate is to come back down from 21.5% to 21%.

There will be no change in duties on tobacco as the Minister said the high price was giving rise to tobacco smuggling.

The Finance Minister has announced details of a scrappage scheme for cars more than 10 years old to run from 1 January to 31 December next year.

When these are traded in for new cars under certain conditions, there will be €1,500 of vehicle registration tax relief.

Read more details on how the scrappage scheme will work here