Coalition mulls reduction in USC ahead of Budget 2025

The Coalition could reduce the Universal Social Charge from 4% to 3% on incomes between €25,000 and €70,000 in Budget 2025.

It's believed Minister for Finance Jack Chambers tabled the proposal tonight which would reduce the USC from 4% to 3% on incomes of €25,760 to €70,044.

It followed a meeting with the coalition leaders this evening, who held discussions for more than two and a half hours.

Reducing the USC was a priority for Fianna Fáil to target low and middle income earners in the budget's income tax package.

It follows on from the reduction of 0.5% which was made last year by then finance minister, Michael McGrath.

A 1% USC cut would be the largest taken by this Government, and form part of a tax package which also involves changes to credits and bands.

The coalition leaders, along with Mr Chambers and Minister for Public Expenditure and Reform Paschal Donohoe, are expected to hold several more budget meetings over the weekend.

A Government source said progress was made at tonight's meeting, but some of the biggest budgetary items have not even been discussed yet.