First official look at cost of living budget as Cabinet meets today

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The government will give the first official preview of the upcoming cost of living budget today with the release of the Summer Economic Statement.

A special Cabinet meeting will meet at 2 p.m. to discuss spending for 2023.

The Summer Economic Statement shows how much money the government expects to spend next year.

Also, it gives a major update on the state of the economy ahead of the budget.

This year it is getting more attention than usual given the intense cost of living pressures people are facing.

Ministers will try to strike a balance between easing cost pressures and not increasing inflation.

The government appears ready to break its own spending rules – going beyond the planned 5% increase in spending each year – a figure based on 2-3% inflation.

It is expected that there will be a significant social protection package.

This could include a double fall payment similar to the Christmas bonus.

Tax measures are also expected, with Fine Gael notably seeking a new income tax bracket at 30%

While a renewal of the payment of 200 euros for electricity is also on the table.

Ministers will also review public transport fares.

However, ministers Paschal Donohoe and Michael McGrath are also expected to point out potential threats to the government’s bottom line, including unreliable corporate tax receipts.

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