The Minister announced that an income levy of 1% on all incomes up to just over €100,000 a year would be introduced. The levy will be 2% above this.

‘This levy will allow all income earners to contribute in a proportionate manner to the restoration of order and stability to the public finances,’ he said, adding that it would be kept under review.

Mr Lenihan also said that Cabinet Ministers and Ministers of State would be giving up 10% of their current pay.