By Daniel McConnell and Fiachra Ó CionnaithA row has broken out within Government over next week’s budget after Finance Minister Paschal Donohoe was warned that increasing the 9% Vat rate would “screw businesses” across the country. Disabilities Minister Finian McGrath hit out at the situation after the Irish Examiner yesterday revealed Mr Donohoe is set to increase the rate to at least 11% in order to raise €526m in additional tax revenue. Speaking as Fianna Fáil insisted there must be “some movement on affordable housing” and that the housing assistance payment must be “significantly increased as it’s demand-led”, Cabinet sources said Mr McGrath warned that “the increase would be screwing businesses”. The budget tax plan is understood to have been mainly completed and will involve what has been termed “small, modest changes”. Key issues including Brexit protection costs, agriculture funding, education, and other matters remain unresolved, with Mr Donohoe due to hold further talks on the areas with relevant ministers later this week.

Source: Irish Examiner October 03, 2018 03:45 UTC