Irish ministers, unions, employers to discuss Budget priorities

Government ministers, trade unions, and employers are convening in Dublin Castle to strategize for the upcoming October Budget. Under the banner "reforming now for a secure future," the discussion aims to address economic challenges projected through 2065, as outlined in a recent long-term forecast.

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must stop squandering the corporation tax windfall and deliver a package of measures that actually supports workers, alongside serious and sustained investment in our public services and infrastructure

However, immediate cost pressures stemming from inflation and escalating energy prices are high on the agenda. With electricity and gas costs rising for consumers, inflation at 3.6%, and the European Central Bank increasing interest rates, these immediate economic headwinds are a primary focus. The Irish Congress of Trade Unions (ICTU) has voiced criticism regarding the government's allocation of funds, particularly the €750 million cost of cutting VAT for the hospitality industry and aid provided to the haulage sector.

ICTU General Secretary Owen Reidy urged the government to "stop squandering the corporation tax windfall and deliver a package of measures that actually supports workers, alongside serious and sustained investment in our public services and infrastructure." The union is advocating for double indexation of tax bands, reduced public transport and childcare costs, and improved pay-related parent's benefit.

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

Tánaiste and Minister for Finance Simon Harris plans to highlight the government's past efforts to increase the higher income tax threshold, enabling workers to retain more earnings. He indicated that further consideration would be given to raising this threshold in Budget 2027 as a practical means of ensuring wage growth translates into higher take-home pay. Meanwhile, Taoiseach Micheál Martin is expected to address the nation's adjustment to a fragmenting geopolitical landscape, emphasizing Ireland's resilience while acknowledging global shifts. He will also outline priorities for artificial intelligence, focusing on increasing productivity, improving public services, and fostering scientific breakthroughs.

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is adjusting to a world that is fragmenting in geopolitical terms