A new survey indicates the public is 'split down the middle' over raising social welfare in the Budget.
The latest Taxback.com Pre-Budget 2023 Taxpayer Sentiment Survey, which examined the public’s Budget 2023 “wishlist”, reveals that just over half or 51 per cent of the 1,500 respondents would not support substantial increases to social welfare payments in line with inflation in Budget 2023, while 49 per cent would.
Meanwhile, a majority of people, almost nine in ten, believe the Government should cut taxes on petrol, diesel, home heating oil or gas in the upcoming Budget. Of those surveyed, 45 per cent said the Government should cut the taxes on petrol and diesel in Budget 2023 – while a further 43 per cent of people surveyed said there should be less tax on home heating oil and gas.
By comparison, few believe the Government should increase the grants for electric cars or home retrofitting.
Read more: Budget 2023: How possible measures could affect middle income earners on €35,000 to €50,000
Speaking of the findings in the survey, Marian Ryan, consumer tax manager with Taxback.com, said: “Interestingly, while there are widespread calls for financial support, the public are split on the issue of funding increased welfare payments through the Exchequer. It’s easy to understand why there might be division - there really is no easy way to split the national pot - with this year being more difficult than ever due to rising inflation and the range of difficult macroeconomic factors we are experiencing."
She said that the majority of households in Ireland are "feeling the pinch at this stage". Ms Ryan said: "While targeting resources at those most in need is absolutely vital, there are also thousands of households in the ‘squeezed-middle’ who are likely finding themselves struggling, but who don’t benefit from many of the social allowances and welfare supports out there, such as school and educational allowances.”
She went on to say there there is a clear majority in favour of tax cuts on fuel. “Of those surveyed, 45% feel the Government should cut taxes on petrol and diesel in Budget 2023 to ease the hit of today’s runaway fuel prices on people’s pockets, while 43% said there should be less tax on home heating oil and gas.
“In considering the overall impact of taxation cuts, one would need to take other factors into account – such as the availability of any fuel allowance and also any eligibility criteria that might apply to tax cuts on fuel. Hopefully, such measures would make it easier for people over the winter, especially where these cuts might coincide with any fuel allowance payments for less well-off households and pensioners.”
Speaking about the cost of childcare, Ms Ryan highlighted that over 90 per cent of people surveyed believe Government should take some action to help reduce costs for families throughout the country, “which is unsurprising given that some families around the country are paying fees that are akin to a second mortgage."
"Tax relief on fees was the most popular option at 37 per cent, followed by an extension of the free childcare place scheme at 23 per cent.” Ms Ryan said the general consensus is that the public are calling out for help in many areas as the cost of living continues to skyrocket in Ireland.
Ms Ryan concluded: "Fiscal measures to ease the deepening impact of the rising cost of living in Ireland are obviously at the top of pretty much everyone’s Budget wishlist this year. Help with the cost of heating, fuel and childcare are all high on people’s agenda, but as ever, who to give this financial support to, and where to find the money to do so, will be two of the many conundrums facing those in power ahead of Budget 2023".
The Budget will be presented to the Dail on September 27 by Minister for Finance Paschal Donohoe and Minister for Public Expenditure and Reform Michael McGrath.
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