Fianna Fáil has promised to abolish the Universal Social Charge for all earners up to €80,000 over five years if it is elected to government .

The party’s finance spokesman Michael McGrath said Fianna Fáil will scrap the 1 per cent rate of USC that applies to income up to €12,012 in its first Budget.

Mr McGrath said the party will halve the 3 per cent rate which applies on the next €6,600.

He said the party would be responsible and insisted the lessons of the past have been learned by Fianna Fáil.

Mr McGrath said: “This combination of measures will skew the early benefit of tax reductions to low and middle income earners and would be worth €220 a year to anyone earning over €18,668. This cut in the USC will be worth proportionately more to low and middle income earners though all income earners in the USC net will benefit.”

The party said the 5.5 per cent rate will be reduced over five years and it will reduce the 8 per cent rate of USC to 5.5 per cent if resources allowed it to.

Asked why Fianna Fáil will not commit to the total abolishment of the levy, Mr McGrath said it was possible to do it.

However he said he did not want to commit to something that he cannot be certain of.

Mr McGrath said there were still risks to the economy citing the impending referendum on a British exit from the European Union.

The party can commit to a reduction in the burden of USC but it did not want to make a promise it could not fulfil.

Mr McGrath said Fianna Fáil would be “prudent and cautious” with the economy.

The finance spokesman said the party will establish a rainy day fund which would ringfence funding in the event of a potential economic downturn.

“We are determined to ensure there is a buffer in place,” he said.