The Labour Party has called on the Government to prioritise children who are homeless instead of any potential hospitality VAT cut as part of next week's Budget.
Party leader Ivana Bacik and finance spokesperson Ged Nash made the comments during Labour's alternative budget launch in Dublin city today.
Speaking just days before Tuesday's budget announcements, Deputy Nash said Labour wants Government to address the "shameful levels of child poverty" in the financial plans.
Deputy Nash said next week's budget should become "a children's budget to end child poverty", and said this could be funded by not reducing hospitality VAT as has been suggested.
Labour has also prioritised a number of other policies in its alternative budget, including:
- €770m for a targeted second tier of child benefit
- 6,000 new childcare places
- a €16 euro a week increase to core weekly social welfare rates
- the indexation of personal income tax and universal social charge rates to take account of inflation and wage growth
- free GP care for all children
- and the abolition of the carer's allowance means test, as well as the introduction of a cost of disability payment
Party leader Ivana Bacik told reporters many of the Labour initiatives can be funded through existing taxation and not introducing changes such as the suggested hospitality VAT rate cut.
Deputy Nash said the cost of living crisis means the upcoming budget and how it is implemented will define the term of the Government.
He added that in his view the coalition has "a growing credibility problem", saying some of their financial plans to date have been "works of fiction".
