Key points from Budget 2021

  • The total budget package for 2021 will be €17.75 billion euro
  • €17 billion in expenditure and €270 million in taxation
  • €8.5bn will be set aside for public services including €2.1bn on contingency funding
  • The Finance Minister has announced that Capital spending is to increase by €1.6bn
  • €3.4bn euro has been announced for a recovery fund which will be aimed at increasing employment
  • There will be an extension of the tax warehousing scheme for employers to include those on The Wage Subsidy Scheme
  • There will be a new COVID restrictions support scheme to provide targeted support for businesses that have temporarily closed because of the pandemic. This scheme will operate when level three or higher is in place and payments will be based on the business's 2019 weekly turnover. It will be effective from today until March 31st with the first payments expected in mid-November
  • VAT for hospitality will be reduced to 9% from November 1st until December 2021
  • The Knowledge Development Box relief on intellectual property is being extended until the end of December 2022
  • Section 481 scheme for film will now run until Dec 31st 2023 at its highest rate of 5%
  • Work is to begin on a tax credit for the digital gaming sector from Jan 2022 on wards
  • Self employed can also benefit from tax warehousing
  • Extension of the accelerated capital allowances scheme for energy efficient equipment for further three years has been announced
  • There will be no broad changes to income tax credits or bands
  • The ceiling for the second USC rate adjusted up to 20,687
  • Weekly threshold for higher rate of employers PRSI will go from 394 to 398
  • Self employed income tax credit is to rise by 150 to 1650
  • Increase in the Dependent Relative Tax Credit by €70 to €245
  • Help to buy scheme is extended until end of 2021 at the higher max €30,000 rate
  • Stamp Duty scheme which refunds a portion of stamp duty paid on acquisition of non-residential land where it is then developed will be extended until end December 2022
  • The carbon tax will increase by €7.50 every year out to 2029 and then by €6.50 in 2030 to achieve €100 per tonne
  • Changes to VRT based on emissions which is aimed at incentivising people to buy low emission cars. Weaker emissions tests on imports will also be changed to bring them up. Meanwhile, Current VRT reliefs for hybrids will be allowed to expire in light of the new rates system
  • Changes to the motor tax regime - rates remain unchanged for those before 2008 while most pollutant cars will be impacted
  • A packet of 20 cigarettes will increase by 50c as well as a pro-rata increase on other tobacco products. It will now cost €14 for the most popular pack of cigarettes
  • Extension of stamp duty relief for the transfer of agricultural land to family members until Dec 2023
  • There is no change to the 12.5% rate of Corporation tax
  • Amending legislation to provide that intangible assets acquired after today will be within the scope of balancing charge rules
  • Change to Capital Gains Tax Entrepreneur Relief so that anyone who has owned at least 5% of the shares for continuous three years will qualify for relief
  • €500m in additional expenditure for businesses in addition to tax measures
  • Commercial rates waiver extended for final quarter of this year at cost of €300m
  • Minister Paschal Donohoe has announced an additional €44 million for Irish Water for infrastructure
  • €80 million extra for the school building programme, ICT and minor works scheme for Department of Education
  • An extra €20 million for disability services through the Transforming Lives programme
  • €10 million in this year's funding for voluntary hospices
  • €8.5 billion for Covid supports
  • €2.1 billion of COVID funds will be held in contingency
  • €340 million of voted expenditure will be spent on Brexit supports in 2021. That includes money for ports and airports and 500 staff for customs
  • Capital spending to get another €600m - Total capital expenditure will rise over €10 billion for the first time ever
  • Ireland has signed up to EU advance purchase agreements for potential COVID vaccines
  • An extra €4 billion for the health service
  • An extra 1,146 acute beds. Increase in critical care beds to 321 by end of the year from 255 pre-COVID. 1,250 community beds in 2021 including 600 new rehabilitation beds
  • €5 million extra homecare hours
  • €5 million for development of community based dementia supports
  • Funding for cancer screening services
  • €50 million for new drugs and €25 million for Healthy Ireland and National Drugs Strategy
  • €38 million for mental health under Sharing the Vision
  • €100 million for new disability services
  • Construction on N56 in Donegal, N4 in Sligo, N5 in Mayo, N22 and Dunkettle interchange in Cork
  • Purchase of 41 additional InterCity railcar carriages and sign contract with potential for up to 600 electric carriages as part as DART+
  • €270 million for Higher Education for 20 building projects
  • €132 million for National Broadband Plan
  • €131 million for Defence Forces capital expenditure
  • €10m for Cork and Shannon airports
  • New multi-annual capital funding of €500 million over 5 years for a Shared Island Initiative
  • €5.2 billion for Department of Housing, an increase of €773 million on 2020
  • 65 million for deep retrofitting of existing social housing
  • Expansion of HAP tenancies. 800 more rental accommodation scheme tenancies
  • 85,000 tenancies to be supported through next year
  • €22 million for homelessness programmes including additional beds
  • €110 million for affordable housing package for affordable and cost rental
  • The Land Development Agency will have €1.2 billion of funding available when it's set up
  • €210 million under Rebuilding Ireland Home Loan scheme
  • €29 million for heritage sites
  • 10,000 upskilling opportunities and 4,000 new apprentices in Higher Education
  • €1.1 billion to the Department of Enterprise
  • Credit guarantee scheme, LEO supports and developing R&D
  • €55 million for a tourism business support scheme and €5 million for tourism product development
  • €14 million extra for the Gaeltacht and Irish language to a total of €78 million
  • €50 million for live entertainment supports and Arts Council funding to increase to €130 million
  • Increase of €36 million for Sport Ireland
  • €7 million for large scale sports infrastructure
  • €2 million for major sporting events
  • An additional €100 million of carbon tax revenue will be put towards energy efficiency of our homes
  • Increase in home retrofit scheme budget
  • An additional €1 billion for public transport in
  • There will be increased deployment of electric cars across the public service
  • Department of Education will have an €8.9 billion budget. €2 billion of that will be put towards children with special education needs
  • 900 additional SNAs and 403 additional teachers
  • Reduction in the pupil teacher ratio by 1 to 25:1 in primary schools by providing more than 300 posts
  • €3.3 billion budget for Higher Education Department
  • About 5,000 places for demographic changes arising from calculated grades
  • SUSI grant for postgraduates will rise by 1,500 to 3,500 and income eligibility threshold has been changed
  • €50 million fund to give all third level full time students €250
  • Social welfare rates to be maintained in 2021
  • Increase in the Living Alone allowance of €5 to €19
  • Fuel allowance up by €3.50 a week to €28
  • Children's Benefit up by €5 for over 12s and €2 for under 12s
  • Increase in carers support grant by €150 to €1850 a year
  • Parents Benefit to be extended by a further three weeks
  • Self employed on PUP can take up some freelance work and not lose their benefit
  • Planned pension age increase in January 2021 won't proceed
  • Christmas bonus to be paid to those on PUP and other welfare if they've been on that for 4 months instead of the usual 15
  • €179 million extra for Department of Agriculture
  • Funding to include controls on agri-food exports and imports to and from the UK post Brexit
  • 7% increase in budget for rural affairs including Town and Village Renewal Scheme
  • €5 million for new digital hubs in rural Ireland
  • 620 new garda recruits and 500 new civilian staff
  • Funding for the inquest into the Stardust tragedy
  • Further ICT for the Gardaí and courts services under €258 million for them
  • Forensic Science Lab and redevelopment of Limerick Prison funded
  • €120 million increase for Department of Children, includes €61 million for Tusla
  • €638 million investment in further years education and childcare in 2021
  • €30m extra for Foreign Affairs