All roads point the same direction or at least all the signs of a non-existent downturn (put in perspective) seem to indicate the same thing. According to an interview last evening on the Last Word (radio show on Today FM) The latest ESRI poll in collaboration with an Irish financial institute shows that consumer confidence in the economy is steadilly increasing for the last 3 months or more.
Sadly in a few weeks we will have the budget to fear and I believe that it will be one of the toughest to date and will undo the confidence of the general public where the media have failed to do so. Already the employee benefit in kind scheme has been taxed (no more company cars – at least without paying for them). I predict that this budget will see an increase in income tax levels, a scrapping of the “rent a room” scheme where live-in landlords can earn Eur 7620 per year tax free, and an increase in the rate of VAT on services. Now, taking it that many people bought houses on the basis of renting rooms (to meet rising house prices) and rely on rental income to meet large mortgage repayments; if this action is taken it would be disasterous and could result in many houses being repossessed. Gloomy morning reflecting my mood towards the state at the moment. Only time will tell but I think it’s all on the cards…