Government accused of tax U-turn

The Wheel, a body representing over 860 charities, has accused the Government of doing a U-turn on tax reform in the forthcoming Budget.

The Wheel, which is one of 17 organisations representing the community and voluntary sector in Social Partnership, said cuts in services without increases in taxation would impose an unfair burden on those dependent on services.

The organisation said the Government had planned to achieve a €4 billion “adjustment” through increasing the tax take by €1.75 billion, reducing current expenditure by €1.5 billion, and reducing capital expenditure by €750 million.

But while the commitment had been made in the supplementary budget in April, representatives of the Wheel who met the Taoiseach in recent weeks said there had been “a change in fiscal policy” and additional taxes would not amount to the forecast figure.

Calling for the Government to reverse the change the organisation said expenditure cutting in the absence of an increased tax take would result “in a totally unacceptable share of the burden on people dependent on state benefits and reliant on public services”

"Many vulnerable people would be hit by the effects of multiple cuts in the public services they rely on, while simultaneously struggling to get by on reduced state benefits," said Ivan Cooper, director of advocacy at The Wheel.