Donohoe: 'Difficult' to say if people will be better off as a result of budget measures

Paschal Donohoe: 'Last year, we expected and justifiably so that we would have a level of inflation for this year that would approximately be 2%. Last week, it was 9%'

Mr Donohoe indicated that income tax bands will be changed to ensure that if workers receive a pay increase this will not be eaten up by entering the higher rate of tax.

Finance Minister Paschal Donohoe cannot promise that people will be better off after budget measures are introduced given the uncertainty around inflation.

It comes as the Government announced that it will unveil a separate package of special one-off cost of living supports on budget day, which has been brought forward to September 27.