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Ireland expected to announce raise in VAT to 23%

Ireland's Prime Minister Enda Kenny during a live televised address to the nation

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5 December 2011 Last updated at 03:19 ET Help

Ireland's Prime Minister Enda Kenny has made a television address to warn the nation it faces new spending cuts and tax rises, despite its bailout.

The Irish government is expected to announce it is putting up VAT to 23%, as part of a new austerity budget.

There will also be cuts in welfare, health and education spending, as the republic attempts to reduce its budget deficit.

Mark Simpson reports.

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