Inheritance tax changes and 'very significant cut' to childcare fees on the cards for budget

Children's Minister Norma Foely says this year will be a 'breakthrough budget' in getting childcare fees down.

PUBLIC EXPENDITURE MINISTER Jack Chambers has confirmed that there is room in this year's budget for changes to inheritance tax. 

Speaking at the Fianna Fáil think-in in Tullamore, the minister was asked about calls from those in his own party and Fine Gael to make changes to the inheritance tax regime. 

Asked if there was room in this year's budget, he said: 

I think there is, depending on where we land on income tax.

However, he ruled out an overhaul of the system that would see those without children being able to nominate a beneficiary, indicating that change would be around increasing the threshold. 

"There are particular campaigns who want us to equalise different categories. That has a tax expenditure of hundreds of millions of euro, which isn't possible. And so, when I was Minister of Finance, we made modest adjustments to the different categories, which shielded more people from paying a level of inheritance tax…

"And it's in I think that's the context for any adjustments on inheritance tax, rather than being able to make a very significant move. It is similarly modest. I think the wider taxation changes, whether it's on inheritance tax or income tax or other adjustments, are going to be modest, because it's a package of €1.5 billion. So, that's the room for manoeuvre for government in the budget overall," said Chambers. 

'Breakthrough' childcare budget

Earlier in the day, Taoiseach Micheál Martin said one of the key focuses for this year's budget will be childcare. 

Children's Minister Norma Foley outlined more detail to reporters, stating that this must be a "breakthrough budget" in terms of early years and childcare costs for parents. 

Acknowledging the government's pledge to move towards childcare only costing €200 per month, the minister said there's a huge priority being given to that by the Fianna Fáil parliamentary party

While she would not outline specifically how much savings parents will benefit from, she said:

"I believe I have the support to make a very significant cut, if you like, or advancement in terms of achieving that goal of €200 in this budget."

Other elements would be the supports for providers, particularly in terms of the provision of additional places through the existing providers, or indeed the new state-led model, which we will be announcing in the coming weeks.

Earlier today, Chambers also confirmed that the income tax cuts will only amount to a "few hundred euro" back in peoples' pockets.