Tánaiste Admits Measures To Ease Cost Of Living Haven't Worked

Thursday, 3 February 2022 13:33

By Caoimhe Harney

The Cabinet Sub Committee meets next week.

The Tánaiste Leo Varadkar has admitted the budget measures introduced to ease the cost of living haven't worked.

Officials in the Departments of Finance, Public Expenditure and Social Protection have been tasked with coming up with ways to address the cost of living ahead of a Cabinet sub-committee meeting next week.

No decisions have been finalised.

However, suggestions include reducing VAT in some areas, lowering motor tax, looking at the price of petrol and diesel or an enhanced electricity voucher.

Vouchers for food will be discussed, but are seen as difficult.

Extending the fuel allowance season, lowering stamp duty on credit cards or targeting fees for things like passport and drivers licence renewals will also be looked at.

But the Department of Finance is cautious.

Economists are worried about putting more money into an economy with record savings, which could in turn actually increase inflation further.

In the Dáil Sinn Féin's Pearse Doherty raised the issue of carbon tax, continuing his party's campaign against the tax.

Tánaiste Leo Varadkar says the big increases in inflation means budget measures haven't worked:

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