Tax increases on low and middle income families in Budget 2011 will only damage the economy and stymie growth, according to Fine Gael Innovation & Research Spokesperson Deirdre Clune TD.

Budget 2011 is an attack on low and middle income working families. The tax changes will reduce their spending power and suck money out of the economy. The impact on economic growth and job creation will be devastating.

Ireland needs a plan that is fair, but instead Budget 2011 unfairly targets low and middle income working families. The combination of reduced tax credits and revised tax bands, and the impact of the Universal Social Charge on incomes upwards of €4,000, will hit lower earners far more than higher ones.

The Government’s Four Year Plan forecast 1.75% growth in 2011, but this Budget seriously undermines that prediction. Even before the Minister had announced his Budget, the European Commission revised down its growth projection for Ireland in 2011 to 0.9%.

Fianna Fáil and the Greens know they are in their last days in office. They have lost all ambition and hope for the future. There is nothing in the Budget to tackle the unemployment crisis or to give an incentive for job creation.

You cannot cut and tax your way out of recession. You can only grow out of recession. There is not a single progressive idea to support job creation to get our economy growing again.

Last week Fine Gael provided a four year plan that sets out a fairer system designed to focus on job creation, prevent our young people emigrating, support small & medium businesses. This plan will provide a stimulus package to invest in water, broadband and energy while protecting the people in our society who are most vulnerable. It must form the bedrock of the next government.