Budget 2027: Ministers fear ‘nobody will be happy’ after bruising spending talks

Ministers have been forced to rein in spending demands, with several departments warning of difficult choices and potential cuts

Public expenditure minister Jack Chambers and his department have come in for criticism from colleagues.

A “tense” and “bruising” negotiation process could end with “a budget which nobody is happy with”, it has been warned.

Talks on several departments’ allocations in Tuesday’s budget ended on Friday, but some ministers who have settled or are coming close to finalising their budgets are understood to be deeply frustrated by their packages. 

One minister admitted that they feared that a large budget would be announced on Tuesday but that “no one would be happy”.

While the public expenditure minister Jack Chambers and his department have come in for criticism from colleagues, Government sources hit back at the idea he is doing anything other than asking ministers to stick to agreed spending plans.

“Cabinet agreed a 6% spending increase on average, but some people are annoyed they’re being asked to stick to that,” a source said.

One Government source likened negotiations to “fucking austerity”, while one person who was in Leinster House at the time of the crash said they cannot remember as “delicate” a budget negotiation since. 

Another source said it is simply a reflection of “moderated” spending this year. 

One senior Government source argued that ministers and the public had got used to covid-era “expansionist” budgets and are now facing the reality of more normal budgetary cycles.

“We’re not in that era any more, and it’s useless to pretend otherwise,” a source added.

Many ministers and their teams said they were fearful of briefing the media about their departments’ wish lists, as they suspect that Mr Chambers and his department are likely to veto or block the measure. 

However, one minister described this as a “total paranoia”.

Fine Gael sources have also suggested that Mr Chambers is “going easier” on his Fianna Fáil colleagues, something one described as “not collegiate”. 

This was brushed off from the Fianna Fáil side, with several ministers expressing frustration to the Irish Examiner about their own budget negotiations, labelling them as “fraught” and expressing frustration with Mr Chambers.

One source argued that they are “negotiating with the Public Expenditure, but they are not negotiating with us”.

Several departments have now settled their budgets, including defence, agriculture, rural and community affairs, higher education, and climate.

However, it is understood many departments are now negotiating on budgets which they fear could see their spending effectively stand still. 

This includes Patrick O’Donovan’s Department of Culture, Communications, and Sports, where it is understood that several cultural and sporting bodies are currently facing “massive” cuts to their budgets under current negotiations as “nothing is off the table”.

Several departments have expressed concerns that Mr Chambers has warned that semi-state bodies and agencies will not get a budget boost.

One source warned that Budget 2027 will “slaughter” and “fillet” semi-states.

Asked if pre-budget infighting between departments is particularly brutal this year, Taoiseach Micheál Martin said he felt the word “brutal” was over the top.

Mr Martin added that anyone who had been in government “when there were real cuts” would understand the meaning of that term.