Cabinet memo warns public sector pay deal has taken all extra funds for existing services

Cuts to existing services will have to be made by ministers if they want to pay for new spending plans next year, they have been warned, writes Daniel McConnell of the Irish Examiner.

A Cabinet memo drawn up by Minister for Public Expenditure and Reform Paschal Donohoe for ministers, seen by the Irish Examiner, confirms warnings from him that the pending public sector pay deal as well as matters already announced have hoovered up any available extra monies.