Taoiseach Leo Varadkar Has Announced Plans To Cut The Rate Of USC

Newly elected Taoiseach Leo Varadkar has confirmed his plans to the rate of Universal Social Charge (USC) in Ireland's next budget.

Just last year, USC was cut by 0.5% - costing €335 million to the exchequer.

Speaking in the Dáil yesterday, Varadkar mentioned that he intends to continue slashing this charge in a response to a question on pay restoration:

“We reduced personal taxation and the universal social charge last year and will continue to do so, hopefully with the support of the Fianna Fáil, in the next budget and the years ahead.”

He also spoke of this at the National Economic Dialogue earlier yesterday, where the Taoiseach referenced his intention to reward the country's hard-working taxpayers.

He said: “Whatever fiscal space we have available, I think it’s important that a portion of that goes back into the pockets of the two million people in this country who pay their taxes and make spending possible.”

According to Dublin Live, Varadkar hinted that budget could be reallocated from other sectors to fund this initiative. He spoke about how a 2% adjustment would reveal a “hidden fiscal space” of between €600m and €1billion.