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Budget to include VAT cut for new build apartments

Government believes that up to 40,000 apartments that have already received planning permission could be affected
Government believes that up to 40,000 apartments that have already received planning permission could be affected

A VAT cut for new build apartments looks set to be introduced in the Budget in a bid to kickstart the building of stalled schemes.

Government believes that up to 40,000 apartments that have already received planning permission could be affected.

It is thought the measure could be introduced quite quickly after the Budget.

This evening, Taoiseach Micheál Martin, Tánaiste Simon Harris and Independent Seán Canney are meeting with the Minister for Finance Paschal Donohoe and the Minister for Public Expenditure Jack Chambers to finalise the details of next year's €9.4 billion package.

It is understood that a permanent reduction to college fees of €500 has been signed off.

However, the Opposition has already criticised this as it is leaving fees €500 higher than existing levels.

The Social Protection package has not yet been finalised and could run into tomorrow.

Hikes of at least €8 to weekly welfare payments are on the cards although this figure could go higher.

It is understood that the Minister for Social Protection Dara Calleary is seeking higher increases to targeted payments including larger hikes to the Child Support Payment.

The Government has promised to abolish the means test for the carers allowance over the lifetime of the Coalition.

To that end, an increase on the income disregard for the payment is on the cards to allow more people to qualify.

With no energy credits this year, it is expected that eligibility for the fuel allowance will expand.