The Government has said a briefing paper which says scrapping USC could add 10% to income tax bills is not relevant.

The Department of Finance has said they have no intention to abolish the Universal Social Charge in one go – but rather to phase it out.

They also said there is no intention to raise the property tax in this year’s budget.

The briefing paper outlines ways to cover the shortfall from getting rid of the USC – including adding €1.50 to the price of a pint.

Sinn Féin’s Pearse Doherty says hikes on income tax and the cost of petrol and diesel would have to be looked at: “The reality here is and what people need to realise is if you get rid of this amount of tax,then it has to be made up somewhere.

” It is either through other types of indirect taxes, which is what the Department of Finance was proposing or it is a reduction of services which means the crisis in housing, in health, in education will continue to go unresolved.”