Budget and cost of living
David Maxwell argued the budget prioritised business and infrastructure over low-income earners and others under pressure. The Taoiseach replied that the Government had invested heavily in infrastructure, housing, disability and children’s supports, and was examining further cost-of-living measures.
"This Budget builds up our resilience and will help us to adapt at a time of historic challenge for our economy." That was what the then Minister for Finance, Pascal Donohoe, told the House last October. That budget still raised day-to-day spending in 2026 by over 6%. That is lower than the 8% to 9% increase in the past few years, with a slower increase intended to protect the foreign investment-focused economy from US trade policies. Last year's budget, with its business and job focus, was needed. What we have heard since, however, is that it does relatively little for low-income earners and other workers, including those who earn too much to qualify for welfare payments but too little to significantly benefit from the higher 40% tax bracket. These workers feel that these adjustments fail to help with them housing and living costs. Can we argue for wider tax credits and perhaps the creation of a middle tax band, rather than just pushing up the 40% entry point, year on year? These people who get up every day to go out and better their lives and those of their families need to feel they are getting reward for their work and not feel that staying at home and claiming benefits is worth more. Can we work over the summer months to bring forward a progressive budget for workers in 2027?
Comment on this
Last year's budget was one of five budgets and people need to realise that. We were strong on infrastructure in the first year, which was the right thing to do because if we do not invest in infrastructure now, it does not get completed any time soon. That was why we had to do that. Of course, disability featured strongly, as did supports for children and housing, which is the number one priority. We will be examining the full range of supports we can give to families in what is a very pressurised environment in terms of the cost-of-living pressures. Obviously, part of that is the tax framework and I have no doubt but that the various Deputies and political parties that make up the three pillars of the Government will bring forward proposals following consultation with their members and consider the most effective way of giving workers a break.