Budget 2027 will be 'a budget for workers', says public expenditure minister

Public expenditure minister Jack Chambers and finance minister Simon Harris speaking to the media at the department of Finance in Dublin about the Spring Economic Statement. Picture: Niall Carson/PA Wire

There will be a cut to carbon tax in today's budget, with all further increases set to be paused until the end of the decade.

The budget will cut the rate of carbon tax on home heating oil to €48 per tonne of CO2 emitted, reducing it from the current rate of €63.50 per tonne.

The Coalition will also pause all future increases in carbon tax on home heating oil for the remainder of the duration of the Government.

Speaking on his way into Cabinet, public expenditure minister Jack Chambers said the budget would be “a budget for workers”.

“[It] makes a real difference when it comes to the tax people pay next year, but also makes a real difference on the cost of living. 

“Areas like the cost of childcare, cost of disability, cost of energy where the Government is really prioritising these areas when it comes to Budget 2027,” Mr Chambers said.

The minister said the budget comes amid “real geopolitical uncertainty”, saying this is why he focused on moderating day-to-day spending.

On funding for a public pay deal, Mr Chambers said the Government wants to see industrial peace while urging trade unions to commence engagement.

“The industrial action is just causing significant disruption to the public, and will worsen if they continue to escalate matters,” he added.

Taoiseach Micheál Martin said it would be a “comprehensive budget”, saying it would seek to ease pressures for the public.