Taoiseach casts doubt on 50% cut in childcare costs by Budget 2024

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Taoiseach casts doubt on 50% cut in childcare costs by Budget 2024
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In interview with The Irish Times, Leo Varadkar defends his leadership of Fine Gael and says three Coalition parties need to ‘stick together’

Asked why the Government might not be able to do the full 25 per cent cut, he said: “It all has to add up. I often say it is not a choice between tax reform and increased spending. What we have to decide first of all is what is the quantum? How big can the overall budget package be without stoking inflation, which is the worry if the budget package is too big. It is just not possible at this stage to say how much can go to childcare.

He said the Government would be able to use the projected “super surplus” to pay down debt, to set aside money for future pension costs, for additional infrastructure in areas such as housing while “still having plenty of room for increases in public spending and a tax package”. “But one thing I do think they show consistently is the Government parties combined well into the 40s [per cent]. Now, what you need to form a government is something around 50 per cent and I think this is a Government that can get re-elected if the three parties stick together.”

“Parties can distinguish themselves from each other at election time. That’s not what we should be doing now. I think we should be working together.”

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