Ministers Donohoe and McGrath announced the strategy for Budget 2021, which is formulated on the assumption of a disorderly Brexit. In line with the Programme for Government, there will be no change to income tax credits or bands. Budget measures will be targeted at the three priorities in the Programme for Government – health, housing and climate change.

As set out in the Programme for Government, a ‘Recovery Fund’ will be established, the details and mechanics of this will be provided on Budget day. The Government will publish a medium-term plan in Spring 2021 outlining how it will balance the budget.

A budget deficit in the region of 4.5 – 5.5 percent of GDP appears to be in prospect; this includes continued substantial COVID-19 related expenditure, albeit not at the same level as this year. This equates to ‘cash’ borrowing in the region of €15–19 billion for next year. However, the overall deficit must be in line with that of our European neighbours. For full details see the Department of Finance’s press release.