What you are most likely to get from Budget 2017 from FTB scheme, cuts in USC to a raise in cigarettes

WITH just two days to go until Budget 2016, much of what will be announced on Tuesday is already in the public domain.

On the spending side, the budget is expected to include hikes in the fuel allowance and the living alone allowance.

A ‘Help-to-Buy’ scheme for first time buyers, believed to be worth up to €15,000, is likely to take the form of a tax rebate and apply to purchases of newly-built homes.

There’s also the suggestion of a childcare subsidy to be paid directly to creches. However, it is unclear whether it will be means tested — or given to all children up to a certain age.

There will also be an extension of Social Protection benefits to the self-employed.

Some €50m will be used to tackle the ongoing problem of hospital waiting lists, including a €15m allocation for the National Treatment Purchase Fund.

The Government will also provide funding for 1,000 new nurses, 800 gardai, and 650 teachers.

There’s also expected to be a cut in the €2.50 prescription charge.

An overhaul of how the ‘Fair Deal’ nursing home scheme applies to farmers is also on the cards, with farm assets likely to be excluded from the scheme.

Funds to retro-fit homes for energy efficiency, and increasing funding for third level education — a key demand of Fianna Fail — are also in the mix. The Government looks set to agree a new childcare package for young parents, but there is some concern that it will not go far enough. Some €100m looks to have been secured to give some relief to parents earning up to €55,000.

Meanwhile, Michael Noonan (pictured left) has around €330m for a suite of new tax measures.

But the big ticket item is the much-maligned Universal Social Charge (USC), which the Government intends to start phasing out from this Budget onwards.

It is expected that the two lower rates of USC will both be reduced by 0.5pc, to 2.5pc and 0.5pc respectively.

Minister Noonan could also increase the threshold at which people begin paying USC from just under €13,000 to as much as €17,000.

Other mooted changes include a rise in the threshold for inheritance tax by €40,000 to €320,000, as well as a marginal increase on the price of cigarettes by at least 30 cents, bringing them above €11 a packet.

As part of Brexit-proofing measures, a capital gains tax reduction for start-up companies of 10pc on earnings up to €10m, is also in the pipeline.

There will be no hikes on petrol, diesel or alcohol prices. There’s a suggestion that Dirt tax may be reduced for savers.

Details of a sugar tax are expected to be announced, though the introduction of the levy will be delayed until 2018. Government tax receipts this year are expected to be €900m ahead of target.