Sinn Féin defends size of alternative budget

By Cillian Sherlock, PA

Sinn Féin has defended putting forward a much larger alternative budget than the parameters set by Government, despite warnings from experts.

The Government’s Summer Economic Statement set out a planned package of €9.4 billion for Budget 2026 – including €7.9 billion in additional public spending and €1.5 billion in the tax package.

The Central Bank, Irish Fiscal Advisory Council (IFAC), and Economic and Social Research Institute (Esri) have all raised concerns about the risk of that package overheating the economy.

On Thursday, Sinn Féin proposed a much larger package as it launched its alternative budget at the Clayton Hotel in Dublin.

We stand over these policies. It is about bringing fairness to the tax code. It is not reducing the amount of tax paid

Its document, called Ending The Rip-off, put forward a €13.4 billion package.

Party finance spokesman Pearse Doherty told reporters the size of the package was “necessary”.

He said: “The first thing you’ll notice is its size compared to the Government’s package of €9.4 billion although the Government may decide to increase that on Budget Day.

“But we are increasing it by €4 billion. Conscious of the reliance on corporation tax, this increase is targeted at capital investment.

"The vast majority of it is in the area of housing.”

The party’s approach also includes a €2.5 billion suite of cost-of-living measures, including €450 energy credits, and an increased renters’ tax of a minimum of €1,250 and a maximum of €2,500.

Mr Doherty added: “The big difference in terms of our approach is also in relation to tax. The Government, as you know, want to reduce the amount of tax that the State will bring in by €1.5 billion.

“We on the other side, at the end of 2026 will see a larger amount of tax being brought in by the State with an increased level of €665 million.”

Sinn Féin said it would do this by raising tax receipts from “banks, landlords and the wealthiest” while still cutting income tax for workers.

It would abolish the Universal Social Charge for the first €40,000 of an income, phase out property tax, cut carbon taxes, and increase the renter’s tax credit.

It would scrap tax relief for landlords, increase the bank levy and introduce a “solidarity tax of three per cent” on individual income above €100,000.

Asked about narrowing the tax base, Mr Doherty said the party was suggesting huge changes to the tax system that would see an increase in collected revenues.

He said Sinn Féin’s proposals would be fairer for workers, adding: “We stand over these policies. It is about bringing fairness to the tax code. It is not reducing the amount of tax paid.”

Mr Doherty said he understood the query around concentrating the tax base, but said: “I think that this is a far better approach.”