How experts (and everyone else) reacted to Budget 2027

Budget 2027 was announced yesterday, described as "More Westlife than Fontaines D.C.”

The opposition have called the budget an "insult". Sinn Féin’s Pearse Doherty TD said that the “majority” of Irish workers “won’t get a sniff of the €750 tax break” that higher earners will enjoy.

Under the new budget, a worker on €60,000 will save €766 in tax annually while someone on €40,000 will save €263. 

Labour Party TD Ged Nash said his party had “expected little” and the government “haven’t disappointed”.

The stand-out was Independent TD Paul Gogarty who brought a little boogie to his speech.

“There’s a few crowd pleasers, heavy on cover versions, something again for everyone in the audience, but nothing of real substance. It’s more Westlife than Fontaines D.C. at a time when we need to stick to certain parameters, but also need to be a bit more radical and visionary,” he said.

Housing

Housing charity Focus Ireland said that this budget "fails to prioritise homelessness or even discuss the crisis despite a record of nearly 18,000 in emergency accommodation."

Focus Ireland noted that, over the period since homelessness was last referenced in a Budget speech, the number of children experiencing homelessness has risen by almost 50%, from 3,991 in October 2023 to 5,830 today, an increase of 1,839 children (46%).

Focus Ireland also said that the failure to adequately increase HAP rates risks pushing more households into homelessness as rents continue to outpace available supports.

The statement that 11,250 social homes will be constructed in 2027 is in line with existing promises, but the failure of Government to meet its construction targets in any year since 2018 was not addressed, leaving little confidence that this target will be reached.

Arts

The Minister for Finance Simon Harris said that the previously floated €100 Culture Card for 16-year-olds was still being worked on after it did not make the final cut for Budget 2027.

"We're going to get it right, and it will be delivered and developed," he said.

Unions

SIPTU General Secretary John King has described Budget 2027 as “a chaotic budget providing little relief for workers” and not the “workers’ budget” promised by Minister for Finance, Simon Harris.

The union says workers can have no confidence that the Government’s budget strategy is going to provide meaningful measures to tackle the cost-of-living crisis.

“When temporary measures are withdrawn, workers will be left with the burden of meeting the high cost of living," he said.

"We are still unsure whether the Government, despite accepting the Low Pay Commission’s proposed 79 cent increase in the Minimum Wage, will again postpone the target date for their own Living Wage beyond 2029.  

“The increase in tax bands and credits falls short of restoring their value to workers after the real cuts, after inflation, they suffered in last year’s budget. This contrasts with the €400 million in tax breaks for capital, business and high-end investments. The Government’s new savings scheme will subsidise people who can already afford to save."

Employers

The minimum wage has increased in this year's budget and some businesses aren't happy.

ISME, together with RGDATA, the Convenience Stores & Newsagents Association (CSNA), the Vintners' Federation of Ireland (VFI), Retail Excellence Ireland (REI) and the Restaurants Association of Ireland (RAI), has expressed disappointment at the Government's decision to the increase.

ISME Chair Finbarr Filan said: “Businesses fully understand the cost-of-living pressures facing employees and many employers have already increased wages significantly in recent years.

"However, this increase is far ahead of both CPI inflation and general wage growth trends and will add further pressure on businesses that are already struggling with rising costs. Higher minimum wage rates can impact the number of hours available to employees, so many end up earning less.”

“The long-term solution to the cost-of-living crisis is to reduce the underlying cost of living itself. In particular, action is needed to address high housing and energy costs. Increasing labour costs without tackling these issues risks creating further challenges for businesses, employees and consumers alike.”

Fine Gael have previously warned of raising minimum wage increasing inflation. A recent Economic and Social Research Institute (ESRI) report found most of the recent increases in Ireland’s minimum wage had no impact on inflation.

The climate

In one sentence: Hauliers are happy and people who study the climate aren't.

The government’s decision to halt further carbon tax increases in Budget 2027 has sparked outrage among climate experts.

Environmental Pillar called it "a retrograde step which will lock people into volatile and costly fossil fuels."

They also say that the failure to provide funding for nature restoration is a missed opportunity to address the biodiversity crisis.

Instead it offers one-off measures rather than a strategic vision to cut our dependence on fossil fuels and protect our environment.

Oisin Coghlan, Policy Advisor to the Environmental Pillar, said: “The Government has missed an opportunity to maintain the carbon-tax trajectory and ring-fence revenues for future social protection, energy-poverty reduction, retrofit, clean heat, sustainable agriculture, sustainable transport and climate action.

“Ireland’s continued reliance on fossil fuels is leaving households exposed to repeated external shocks and volatile energy prices, with many struggling to meet the cost of essential energy needs.

Hauliers

The Irish Road Haulage Association (IRHA) President, Ger Hyland, the measures.

Things like a continuation of the diesel rebate scheme until the end of 2026, an extra two month payment to hauliers of the Road Transporters Support Scheme (RTSS) to be paid before Christmas, and a continuation of the fuel excise reductions into the Spring of 2027.

Hyland described these Government supports as much-needed and welcome measures that will help keep inflation under control, support small businesses and have a positive impact on households, consumers across the country and the haulage sector.

Hyland said "these measures will help to keep prices at the supermarket down".

There was no evidence provided for this statement.