Irish budget to tackle childcare and energy costs

The Irish government is expected to announce measures to help with energy and childcare costs when it delivers its budget later.

The threshold at which people start paying the higher rate of income tax is also expected to be increased from its current level of €44,000 (£37,000).

The Taoiseach (Irish Prime Minister) Micheál Martin said the budget has to be about "trying to ease the pressure on families and households".

The broad shape of the budget was set out in the Summer Economic Statement, external, promising tax measures worth €1.5bn (£1.27bn) and extra spending of €7bn (£5.92bn).

Much of that additional spending is "standstill" funding to cover the rising costs of current services.

Ireland is in a stronger fiscal position than most European countries as an ongoing corporation tax windfall means it is collecting more in taxes than it is spending on services.

Figures released last week showed the country is expected to run a surplus of €6.9bn (£5.84bn) this year, lower than the €9.2bn (£7.79bn) forecast in April.

That smaller forecast surplus reflects the introduction of fuel supports and additional spending to cover budget overspends, particularly in health.

Some of the surplus is being invested in national wealth funds to help with future spending commitments.

'Culture card' for teens

A spending watchdog, the Irish Fiscal Advisory Council, has criticised the government for not saving more.

Other measures expected to be announced on Tuesday are a new tax-free savings scheme, similar to the UK ISA.

A proposal for a "culture card" for teenagers, to spend on events like concerts, is also set to be announced though the value and eligibility are unclear.