Sinn Féin will propose a higher bank levy to fill the void in the State’s finances caused by scrapping water charges. The party, in its pre-budget submission to be launched on Wednesday, will also outline how it would abolish property charges and increase income tax on earnings over €100,000 if in government.

The document cites a letter from the Department of the Environment which puts the net cost of abolishing water charges at €210.5 million in 2016. Sinn Féin would stop the distribution of the €100 water conservation grant which would save €130 million. The €80.5 million void in the State’s finances would be filled by a higher bank levy.

The pre-budget submission proposes moving from the 50/50 split between tax cuts and expenditure increases.

It will propose a €1.5 billion increase in expenditure and an additional €400 million on capital investment, primarily on housing. It will call for a tax credit of €500 for the self-employed, but this will not apply to certain high incomes.

The party will also propose further pay cuts for TDs, Senators, Ministers and civil servants earning over €100,000.