Government set to agree to €8.5bn package for Budget 2027

Mr Chambers is expected to tell Cabinet the spend will be directed towards public services and infrastructure projects, including housing, roads, public transport, water services, and energy infrastructure.

He is also expected to stress the need for reform and efficiency measures across government departments to ensure value for money.

Mr Harris is expected to confirm an overall tax package of €1.5bn; the finance minister has repeatedly said he wants this to go towards an income tax cut for workers.

He will tell Cabinet on Wednesday that the tax package must assist workers, while also preparing the economy for an uncertain global environment.

The pair will tell ministers the key pillars of the summer economic statement are “rewarding work and effort; improving public services; investment in critical infrastructure; and investing for the future".

With an overall package set at €8.5bn, it will be a smaller budget outlay compared the €9.4bn spent in Budget 2026.

Wednesday's announcement will formally kick off the budget process, with detailed negotiations on spending and tax measures set to begin.

Final decisions will be made in the coming months as ministers negotiate the contents of Budget 2027 ahead of its presentation on October 6.

At the National Economic Dialogue in June, Mr Harris said he wanted to see a focus on widening income tax bands while also making progress on childcare investment.

In Budget 2026, the Government opted against introducing tax cuts for workers, instead reducing Vat for the hospitality sector and on the sale of new-build apartments.

Taoiseach Micheál Martin also signalled cuts to childcare, saying the Government needed to increase spaces and improve pay and conditions of workers in the sector, which stands in “stark contrast” to higher tiers of education.

The Taoiseach also suggested the Government would examine using money within the National Training Fund to assist with upskilling workers with AI.

The National Training Fund helps individuals seeking employment, or those who are in employment and looking to upskill. It is financed through a levy on employers, with an estimated €2bn within the fund.

The proposal was suggested by business lobby group Ibec, which said the Government needed to invest the projected fund surpluses each year into training workers in AI integration.

“We will examine that proposal as part of the economic dialogue and certainly as part of the budget preparations,” Mr Martin said.

The Taoiseach also signalled that changes to inheritance tax could be made in the budget, telling the Dáil last month he was "very conscious" of the issue.

• Tadgh McNally is a Political Reporter.