UCD President Orla Feely Comments on Budget 2025 and its impact on students. News Editor Adam Behan gives a delicately balanced analysis of Budget 2025
For whichever political party or coalition is in power, the Budget is major publicity. The publication of the annual budget in Ireland has historically been scrutinised by the public to account for shortfalls. Although the distribution of exchequer funds throughout the various economic sectors of the state is carefully monitored by respective stakeholders, the average person is not as informed and is most concerned about how the budget puts money back into their pockets. While the Government cares more about the act of gift-giving, the public cares about the gift.
Rumours of looming elections are circulating, with some claiming that they may take place in November, and others proposing February, after the majority of budget changes have been implemented. How the budget measures translate to effective savings for homes could largely determine how voters will cast their ballots in a few weeks or months’ time.
The University Observer has recently published an article which details some of the new measures outlined in Budget 2025 and how it will financially impact students. In general, reactions have been lukewarm. Despite another €1,000 student contribution reduction and increased funding to be provided for the Student Assistance Fund, representative student organisations like UCD Students’ Union have condemned the Budget as “smoke and mirrors” for third-level students, with no meaningful changes to support students.
No measures have been introduced to increase the supply of purpose-built affordable accommodation on college campuses and students are expected to increasingly sacrifice their comfort and autonomy by having to make-do with digs and homestays as no affordable alternative is available.
UCD President Orla Feeley provided some positive feedback on Budget 2025:
'There were some positive steps in the budget for the higher education sector and for our students. More needs to be done, and we will work to build from here.
Another important recent step has been the government commitment of €67 million towards a possible further phase of student accommodation at UCD. This includes funding to allow 30 per cent of the newly built beds to be made available for use by students in National Access Plan priority groupings, or categories of students eligible for support via SUSI, at a discounted rate of rent.'
Despite this, current measures will continue to force students to adopt precarious strategies to stay in university.
€12 billion has been allocated to education in Budget 2025, which provides for such measures as free hot meals for all students in primary school, free textbooks, and increased resources and staff for special needs education. However, there are always measures which raise eyebrows and stir consternation if not outrage, outright. This year, €9 million has been allocated to secondary schools nationwide for electronically-sealed pouches which will be used to store mobile phones. Finance Minister Jack Chambers has cited this measure as a policy which is an “investment in children’s welfare, in mental health, in dignity at school”, in response to criticism from the opposition benches in the Dáil who argued that the €9 million could have been dispersed among the other measures.
We have witnessed many small businesses close their doors around Ireland over the past year. For small and family-run restaurants, despite no indication of change, the maintenance of the 13.5% VAT rate could be troubling even with state assistance. An increase in minimum wage to €13.50 from January 2025 will increase the costs of keeping businesses open as staff receive higher wages. Some restaurants will need to increase prices to break-even. According to a new report from PwC, insolvencies in the hospitality sector have worryingly increased, with 110 recorded in the first half of 2024.
It is important to note that the Budget affects everyone differently, and as such, everyone will have a different reaction to how the measures in Budget 2025 help them. Some political parties say the budget is far from enough, whilst others say it’s the most robust budget in the state’s history.
Seeing an eye-watering €14 billion tax return from Apple being emptied into the state coffers, and a cabinet not willing to spend it, is not encouraging.
A simple economic imperative suggests that in order to make money, you have to be willing to spend it. Governments are spending, but such spending has not reversed negative trends, with an overdue children’s hospital steadily swallowing more cash, increasing rural depopulation, young people emigrating, a mental health crisis and child poverty increasing, among a long list of issues. A delicate balance needs to be struck in Budget 2025, but it won’t be clear if it has until next year.