Finance minister gets Cabinet approval to base Budget 2020 around a no-deal Brexit scenario

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The Government is set to deliver a range of budgetary measures on 8 October to the tune of €2.8 billion with some of that now being used to insulate against the fallout of a no-deal Brexit.

Donohoe will deliver Budget 2020 on 8 October. Image: Sam Boal Donohoe will deliver Budget 2020 on 8 October. Image: Sam Boal Updated 39 minutes ago

Some €2.1 billion of that has already been committed to projects outlined in the Summer Economic Statement in June, with the remaining €700 million thought to be earmarked for tax cuts and increased spending. Minister Paschal Donohoe says the Budget will be a safe and careful one, with plans to ensure Ireland has the supports needed for a no-deal Brexit. pic.twitter.com/WOtAhwBz48Speaking after the meeting, the minister said: “A no deal Brexit will have profound implications for Ireland on all levels. These include macroeconomic, trade and sectoral challenges, both immediately and in the longer term.”

It also warned the Government should not rely on corporation tax outperformances to balance the budget and that it should not expect long-term spending to be offset by such a volatile source of income. “That’s not to say that it will happen or even that the probability of it happening is above 50% but of the range of possible outcomes that Brexit can bring, it does appear that a hard Brexit is the most likely and planning on the basis of that for the budget over the next couple of weeks is the most appropriate action to take.”

 

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'No-deal Brexit budget' on the way as finance minister set to update Cabinet todayIn its pre-budget submission, the IFAC warned that the economic outlook internationally has deteriorated in recent months as the risk of a hard Brexit has increased.
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