The Taoiseach has all but confirmed that the highest rate of USC will be cut again in the next Budget.

Enda Kenny says the measure would cost the state €around €250 million - which he says would leave plenty of funds available for other measures.

At the launch of a Fine Gael election advert today he's again confirmed the government's plan to phase out USC entirely.

A cut of 1% to the top rate, of 5.5% - which applies to all income over €18,668 - would mean a saving of around €171 for an average worker, with savings rising as income climbs.

The finance minister Michael Noonan has separately added that he believes the abolition of USC is essentially a policy to create more jobs.

However the move has an outside chance of causing friction with Labour - who want to keep USC, or some kind of income levy, to apply to the highest earners.

Our political correspondent Gavan Reilly filed this report for Today FM's National Lunchtime News: