Water ‘black hole’ is budget priority ahead of other spending demands

A “black hole” of more than €200m to cover the cost of the ongoing suspension of water charges and other related water costs will have to be prioritised in October’s budget ahead of other spending demands, the Irish Examiner can reveal.

As a result, ministers have been warned to “dial down their expectations” in terms of new spending plans for the budget, and savings in some areas may be required to balance the books.

Housing Minister Eoghan Murphy has yet to finalise the total cost of replacing the revenue lost from the suspension of water charges, but two Government ministers confirmed the figures for replacing the water charges revenue alone to be in the region of €100m.