Ministers told to 'prioritise and make choices and trade-offs' for Budget 2027

Public expenditure minister says savings which can be reinvested by departments will need to be found

Overall, there is a budget package of €8.5bn available, with €1.5bn of this due to be spent on tax cuts. File picture

Ministers have been told to find savings which can be reinvested by departments in next month's budget.

Public expenditure minister Jack Chambers set out the Government's expenditure strategy for Budget 2027 at Wednesday's Cabinet meeting and told ministers there is an obligation on them "to ensure Budget 2027 measures demonstrate a clear link to improved outcomes and better public services for people".

While overall public expenditure will increase by €7bn next year, which is around a 6% increase on 2025, this is a moderation on spending of previous years and ministers have been told that they will have to "prioritise and make choices and trade-offs for 2027".

Mr Chambers has repeatedly warned ministers that spending in this year's budget will have to be met with savings within departments and state agencies and on Wednesday, ahead of the beginning of bilateral meetings, he told the cabinet that Budget 2027 will be tighter than in previous years.

Overall, there is a budget package of €8.5bn available, with €1.5bn of this due to be spent on tax cuts. 

The remaining €7bn will go towards new spending measures, but also on ensuring the existing level of service. 

Some of the tax package will be taken up with a move to increase the entry point for paying the higher rate of income tax to at least €46,000.

Also at Cabinet, minister for children, disability, and equality, Norma Foley, and minister of State with responsibility for disability, Emer Higgins, presented the Disability (Amendment) Bill 2026 to Government, which will introduce a number of changes to the assessment of need process for children and their families.

A statement said that over the last number of years, demand for assessments of eend "has increased significantly as parents seek the right kind of supports for their children at the earliest possible juncture in their lives".

Under the new bill, the process "should be focused on establishing the needs for a child, rather than lengthy and complex reports on a diagnosis of disability".

This legislation will also give "increased flexibility to applicants and their families, as well as the HSE, to withdraw and close, and reinstate applications under very specific rules".

Eleven new in-reach teams will be available to provide clinical guidance and support for clinicians performing assessments.