‘Legacy cuts could worsen budget’

Despite the Government lowering its headline target from €3.1bn to €2.5bn, so-called legacy cuts could increase the real adjustment made via tomorrow’s budget announcement, an economic think tank has warned.

Dr Tom Healy, director of the Nevin Economic Research Institute, said: “Whatever adjustment is announced on Tuesday will take further money out of an economy already on its knees in terms of retail sales, employment, and debt.

“Any reduction in that adjustment is to be welcomed.”