With a general election around the corner, new research has revealed that how the Government tackles the cost-of-living challenges faced by households around the country could well be a deal-breaker for votes.
The high cost of living is still weighing heavily on people’s minds - emerging as the biggest concern for people ahead of the upcoming Budget, with housing a close second.
According to the findings of a new survey by Capital Credit Union, of more than 3,700 adults, the vast majority believe either the cost of living (42pc) or housing (34pc) should be the Government’s biggest priority in Budget 2025.
Concern around these two issues are dwarfing the public’s concern around other matters – with healthcare way down the public agenda by comparison and crime further below that again (see Table 1 in Appendix).
The research also revealed that while six in ten people would be willing to pay more in tax to fund better public services, two-thirds of this cohort would only support a small increase in taxes.
Commenting on the survey findings, Pat Byrne, Chief Executive Officer at Capital Credit Union said:
“It’s not lost on the Government that public perception of how they handle the upcoming Budget will weigh heavily on the election that is on the horizon, with some saying before the year-end.
For more than three-quarters of the Irish public, how to afford the general expenses of daily life, or how to put a roof over people’s heads are the most pressing matters”.
The Capital Credit Union Survey showed that housing was the most pressing concern of those in their 20s, with almost half citing it as the top issue for the Government.
Mr. Byrne observed,
“The huge concern around housing in this country is reflected in this research. The Government must make headway on this in the upcoming Budget. Earlier this month, the Central Bank warned that the housing supply needs to increase by about 20,000 a year in order to meet the country’s needs and that an estimated €6.5bn to €7bn of additional development finance would be needed for this. These are not figures that can be achieved easily and so it is imperative that there is some imaginative and progressive thinking in the upcoming Budget.
The number of homeless people in this country is consistently hitting record highs, with the number of homeless adults recently surpassing 10,000 for the first time. This is a situation which is simply not acceptable in a country as wealthy and developed as Ireland. Unless real action is taken on housing, these homelessness figures will only spiral further. It is time that the Government really listened to the issues that Irish people are crying out to be addressed.”
Headline findings revealed by the Capital Credit Union Pre-Budget 2025 survey include:
- People in their 70s were the most likely to support an increase in taxes in return for better public services (29pc versus 19pc of those in their 40s and 50s).
- Less than one in ten (9pc) cite healthcare as the top priority for the Government in Budget 2025. The older people are, the more inclined they are to say this. Almost one in five 70-year-olds cited healthcare as the top Budget issue compared to less than 2pc of 20-year-olds and less than 5pc of 30-year-olds.
- Only a small percentage (6pc) believe the Government’s biggest priority in the upcoming Budget should be to cut income tax.
- The environment is one of three things which is of least concern to people ahead of the Budget. Only 2pc of those surveyed said the environment should be the biggest issue addressed by the Government in Budget 2025.
- The cost-of-living was the dominant concern of those aged between 30 and 60, with more than half (52pc) of 40-year-olds saying this should be the main issue tackled by the Government in Budget 2025.
Mr. Byrne continued:
“While Irish inflation is thankfully easing - recently falling below 2pc for the first time in over three years, the reality is that after the record inflation of recent years, prices here are still incredibly high. Ireland is the second most expensive country in the EU, with prices for basic goods and services a staggering 42pc above the EU average, according to a Eurostat report published earlier this summer. Recent research has shown that most Irish people think eating out here is too expensive, while a recent survey by Failte Ireland found that almost half (46pc) of tourist businesses cited the cost of tourist accommodation as a cause for concern, with some saying they had lost business as a result of these costs. So living costs are still clearly a huge challenge for Irish people and businesses – and it is important the recent slowdown in inflation doesn’t divert the Government’s attention away from this key issue.”
Appendix
Notes to the Editor:
Capital Credit Union has over 50,000 members and several branches across South Dublin. A highly progressive credit union, Capital Credit Union already offer their members personal loans up to €100,000, mortgages up to €400,000 and business loans up to €400,000.
Capital Credit Union is always focused on supporting the local community, donating over €60,000 annually to local schools, charities, and community organisations along with a Higher Education Scholarship fund of €25,000. In 2023, Capital Credit Union funded seven significant projects in the community through their Community Development fund with one of these projects being a Sensory Room in a local primary school.
As a leader in the local community, Capital Credit Union is always there to support its members in any way they can.
For more information, please visit www.capitalcu.ie
