Fianna Fáil's finance spokesperson Michael McGrath has said the package for tax and spending measures for next year's budget will be significantly above the €800 million that is currently planned.

He said the overall figure for tax spending measures has yet to be finalised because the health budget has yet to finalised.

At the launch of his party’s priorities for Budget 2019, he said they favoured cutting the third rate of the USC, which he said would affect a million workers.

The 4.75% rate of USC is paid on income over €19,300 and below €70,000.

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Mr McGrath said not cutting income tax and doing nothing would effectively result in an increase in tax.

He also said his party would be judged on the delivery of housing measures.

Fianna Fáil is proposing the introduction of an affordable housing scheme which would result in 4,000 homes being built on State land.

It was originally proposed that €200 million would be invested in the scheme in 2019.

The rate of affordability was not revealed today.

Fianna Fáil is also proposing an increase of €5 in the State pension and other social welfare payments.

The party’s spokesperson on Public Expenditure and Reform, Barry Cowen, said "nothing is in the bag until everything is in it and the negotiations were continuing."

Mr McGrath added that "there will be revenue raising measures" but they were not aware if a decision had been made to increase the 9% VAT rate for hotels.