Higher income tax threshold and childcare supports under consideration for Budget 2027

Harris is to tell delegates that the Budget will focus on reducing income tax for workers, making childcare more affordable for families and introducing reforms that improve public services.

Mr Harris is set to outline Budget 2027 plans at the National Economic Dialogue.

A widening of income tax bands and investment in childcare are on the cards for the Budget, the Tánaiste is set to tell the National Economic Dialogue.

The yearly discussion features the voluntary sector, businesses, unions, and research institutes will in addition to members from Cabinet and the Committee on Budgetary Oversight to mark the beginning of Budget discussions.

In his speech Mr Harris, the Minister for Finance, will tell delegates that the Budget will focus on reducing income tax for workers, making childcare more affordable for families and introducing reforms that improve public services.

Having increased the amount that a person can earn before the higher rate of tax kicks in in two consecutive budgets, the Government last year declined to. Mr Harris is set to indicate that this will resume in October.

“Successive Budgets have increased the point at which workers enter the higher rate of income tax, helping people keep more of what they earn,” he will say.

“As we prepare Budget 2027, we will consider further increases in that threshold as a practical way of ensuring wage growth translates into higher take-home pay.

“This is about supporting people who work hard, contribute to their communities, raise families and keep our economy moving.” The Tánaiste will also identify childcare affordability as a significant pressure facing many working families.

“When childcare is expensive, parents – particularly mothers – can face difficult choices between remaining in work and providing care at home.

“That is why Government must remain committed to making childcare substantially more affordable for working families.” “Investing in childcare is not only good social policy. It is good economic policy.” The Tánaiste will also warn that "the international systems that have underpinned prosperity and stability for decades are under intense strain" and that Ireland "cannot insulate itself from these developments, but we can prepare for them".

The Department of Finance says that the dialogue "will encourage engaging conversations, from managing safe public finances and prioritising reform, to maximising the impact of public spending across a range of areas such as agriculture, social protection and disability, while addressing key challenges including competitiveness, housing and the transition to a lower carbon economy".