Cowen Says 'Major Tax Changes' Ahead

The Taoiseach, Brian Cowen, has said there will be "major tax changes" in the upcoming budget.

Mr Cowen further reiterated there will be no "silver bullet" to rescue the economy in next week's emergency budget.

Speaking at a conference in Dublin organised by the Irish Management Institute, the Taoiseach said this morning that getting the banking system back on track and freeing up credit for businesses were among the Government's top priorities.

The news comes after the Finance Minister Brian Lenihan revealed there was a €3.7 billion shortfall in the first three months of the government's revenues.

The Irish Business and Employers Confederation has been calling for the introduction of a 3% reduction in welfare payments to help save the government some extra money, however pressure group CORI Justice have rebuked the IBEC's claims.

The group said there is "no justification whatsoever" for the move, adding that more than half of all those at risk of poverty in Ireland today (55.9%) live in households headed by a person who is outside the labour force (i.e people who are older or ill, or have a serious disability or are in caring roles).

"These are Ireland's most vulnerable people and they depend completely on social welfare payments for survival," according to Dr Seán Healy, SMA Director of CORI Justice.

(DW/BMcC)