Billed as a 'cost-of-living' budget, finance minister Paschal Donohoe has set out to assist people around the country as inflation and energy prices erode their purchasing power.

The Budget 2023 'package' totals €11bn - €4.1bn in one-off cost of living measures, €5.8bn in increases in government spending, and €1.1bn in tax cuts.

The major measures unveiled include:

• An increase to weekly welfare rates of €12
• Annual €500 tax credit for renters, including for 2022 (taking effect in 2023)
• 20% tax band increased to €40,000
• Businesses to get up to €10,000 a month to assist with energy bills
• 25% cut to childcare fees
• Third-level student fees to be cut by €1,000
• Double child benefit payment to be paid on two occasions (not just Christmas)
• Extension of GP visit card to 430,000 new beneficiaries.

Winners

Business

With businesses struggling to cope with soaring energy costs, the Temporary Business Energy Support Scheme promises substantial subsidies.

In Association with

The minister said the scheme would operate by comparing the average unit price for the relevant energy bills in 2021 and 2022.

If the increase is more than 50%, the businesses would become eligible for monthly financial support equating to 40% of the increase in the bill amount or €10,000, whichever is lower.

Parents

After a host of measures were announced to assist parents with childcare costs, it has been estimated that childcare fees will be cut by an average of €1,200 per child.

In another huge boost to both parents and aspiring parents, IVF will be publicly funded from next year. IVF treatment generally costs €4,000 to €5,000.

Students and renters

Renters will finally be given some reprieve in the form of a €500 tax credit, one for 2022 (backdate in 2023) and one for 2023. Students have also been handed a significant boost with third-level fees to be cut by €1,000 this year.

Losers

Hospitality sector

Despite a strong industry lobby to 9% VAT rate for the hospitality sector - a special measure that was introduced during the pandemic - the 13.5% VAT rate will from 28 February 2023.

Builders

To raise revenue to fund the mica redress scheme, builders have been hit with a concrete blocks levy that is expected to bring in between €80m and €90m per year.

The possibility of a levy on the construction industry was flagged by Tánaiste Leo Varadkar earlier this year when he said "it wouldn't be reasonable to expect the hardworking taxpayer to pick up the entire bill" when discussing the mica crisis.

Smokers

It's the old reliable for many finance ministers, and that didn't change with this budget, with the price of a packet hiked by 50 cents from tonight, with a pro-rata increase on other tobacco products across the board.

This brings a packet of 20 up to €15.50, depending on the brand.

Paschal Donohoe didn't hit alcohol this year, instead giving small producers of cider and pear cider 50% excise relief.

(Pic: Getty Images)