LABOUR REACTION:MINISTER FOR Finance Brian Lenihan's financial statement was the "Budget from hell", particularly for middle-income families with children, according to Labour finance spokeswoman Joan Burton.

Drawing an analogy with the first World War generals’ leadership of their troops, she said it was like “lions being led by donkeys”.

Ms Burton also claimed the Government would face repayments of €1 billion to property companies and the banks which lent to them, because of major writedowns in the value of land and property.

They will have “massive losses for tax purposes”, which could be carried forward and written off against tax paid in 2007, and allow for refunds. The Revenue “will have tax refund claims from both the company and the bank”.

“I do not think the Government can stand idly by and tolerate this, and “the very banks we are helping are fleecing us with bailout demands and they will shortly be fleecing us on the double with tax refund demands based on writedowns of their dodgy loans”.

The bad asset provisions were a scandal and she claimed that, not only would the public pay for the fields, unsold apartments and land in Ireland, but also for speculation in London, Dubai and the US.

Referring to examples in the Budget document of “Colm and Lorraine” with two children on a single income of €60,000 a year, Ms Burton said they would pay an extra €1,800 in income and health levies and lose about €1,000 a year in early childcare supplement.

But “tax exiles will sleep easy” because they are not affected by it.