Kenny: Next budget will be Cabinet’s most challenging

The forthcoming budget will be the most difficult of the Government’s five-year term, Enda Kenny has predicted.

It comes amid mounting signs that there will be significant policy clashes between the Coalition partners in the budget negotiations. Fine Gael and Labour are already at odds over the possibility of including farmland in the means test for third-level student grants.

The potential need to increase PRSI could cause another rift, after a report yesterday suggested such a hike may be necessary because of a looming black hole in the social insurance fund. In addition, ministers continue to give personal views on budget issues, even though Mr Kenny has asked them not to do so.