Budget 2027 will 'reduce cost for families', says Taoiseach

Taoiseach Micheal Martin said the budget on October 6 will 'provide a framework' for the Government to 'deal with any issues that may still be there, depending on what transpires in terms of that ongoing conflict'.

Taoiseach Micheál Martin has said Budget 2027 will “reduce cost for families”, and sectors that are dependent on fuel.

As pressure grows on the Government to maintain excise cuts on petrol and diesel, Mr Martin insisted the Government has shown “flexibility” in the past on cuts but would not commit to any extension.

Following a spike in the price of oil following the closure of the Strait of Hormuz and the ongoing war between Israel and the United States with Iran, the Irish Government announced excise cuts on petrol and diesel. These were increased following the nationwide fuel protests.

The 27c reduction on petrol and 32c reduction on diesel is due to be gradually unwound in monthly instalments from September 1.

When asked if the cuts would be extended at the Tullamore Show on Sunday, Mr Martin said the Government was “conscious” of the issue but gave no commitments.

However, he once again said Budget 2027 will be a “cost of living” budget.

“We've demonstrated our flexibility already in terms of responding to that situation from the moment the war broke out in the Middle East, in terms of the US, Israel, and Iran,” the Taoiseach said.

“We're very conscious of the volatility of it. That's why we actually took a decision to delay the expiry of some of the measures.

“We have a budget in October, which will focus on cost of living, and will focus, both through tax and other measures, to try and reduce costs for families and for particular sectors who are dependent in terms of the utilisation of fuel.”

The Taoiseach said the budget on October 6 will “provide a framework” for the Government to “deal with any issues that may still be there, depending on what transpires in terms of that ongoing conflict”.

Tánaiste and finance minister Simon Harris, meanwhile, on Sunday vowed that the budget will contain a “tax package that rewards work”.

In a Substack post, he also committed to making childcare more affordable. The programme for government commits to reducing childcare to €200 a month.

“The Budget will not solve every challenge overnight. No responsible Government could credibly claim that it would,” he added.

• Louise Burne is Political Correspondent.