The Ministers for Finance and Health were in talks late last night to iron out differences over the shape of the upcoming Budget, and health strategy. Mr Charlie McCreevy and Mr Micheβl Martin were attempting to agree the package to finance the health strategy next year. The strategy is due to be published on Monday.

Mr McCreevy has made it clear publicly that the amount he can deliver in the Budget on further capital spending as well as social welfare increases and tax cuts would depend on the amounts agreed with Mr Martin and other Ministers. However, it is already clear that there will be no cuts in the rates of tax and only a small increase in the standard rate tax band, perhaps to around £21,000 (€26,665).

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