A range of tax cuts - including reductions in the USC and changes to inheritance tax - have been outlined to Cabinet by Minister for Finance Michael Noonan.

With Budget 2017 two weeks away, Mr Noonan outlined a rough outline of the plans to his ministerial colleagues at Cabinet on Tuesday.

The Government has about €1 billion to spend in the Budget, split on a 2:1 basis between spending increases and tax cuts.

Mr Noonan told Ministers that he is likely to reduce the lowest two USC rates by half a point each - from 1 per cent and 3 per cent to 0.5 per cent and 2.5 per cent respectively.

He will also raise the threshold at which people enter the lowest USC rate, effectively taking more people out of the USC net. The USC entry point is currently set at €13,000.

The Minister will also further increase the threshold at which inheritance tax for gifts between parents and children will be levied.

In his last budget, Mr Noonan began a process of gradually increasing the inheritance tax thresholds - by raising it from €225,000 to €280,000.

It is understood that Budget 2017, which will be presented on October 11th, will raise it again by as much as €40,000, as part of a multi-year process to eventually raise it to €500,000.

However, while the Government is planning to raise the threshold, it is not proposing to cut the 33 per cent tax rate applied to bequests over the threshold. This rate increased in 2009 from 20 per cent.

A tax credit for self-employed people announced in last year’s budget will also be extended.

The “earned income tax credit” worth up €550 was announced last year and it is likely to be doubled in a fortnight’s time.

Mr Noonan also told his colleagues he intended to help first time house buyers, but did not give any specifics, and said he will provide further support for start up companies.