LAST UPDATE | 14 hrs ago

OCTOBER’S BUDGET WILL have an overall package of around €7 billion, Tánaiste Simon Harris told his Fine Gael parliamentary party this evening.

The split between tax and spending is to be decided in the summer economic statement, which is to be released in the coming months.

A special party meeting on the Budget was held this evening. At the meeting, it’s understood Harris outlined his plan for the Budget to protect the economy but also to make decisions to “help hardworking people”.

Budget 2027 will be a smaller package than its predecessor, which totalled €9.4 billion. This was made up of €8.1 billion in public spending and €1.3 billion in tax cuts.

Budget 2026 attracted criticism from the state’s fiscal watchdog, the Irish Fiscal Advisory Council (IFAC), which said the government was spending “like there’s no tomorrow”.

Harris and public expenditure minister Jack Chambers have kept Budget considerations relatively close to their chests, although cuts to income tax have been flagged.

The Taoiseach today said the government is moving towards establishing a “cost of disability” payment, although he declined to commit to such a payment appearing in the upcoming Budget.

Harris said this evening that an income tax package should be targeted at workers, adding that his party has a “strong record” in this regard. He pointed at the raised entry point of the higher rate of income tax over the past decade.

It’s also understood he spoke about his plans to establish a savings and investment account. The finance minister this afternoon met with representatives from three pillar banks to discuss these plans.

Work to deliver the commitment in the programme for government to bring the cost of childcare to €200 per month per child should begin during the Budget, he added.

Consideration of “structural lasting change” in Ireland’s energy infrastructure should also be given in the Budget, he said.

Members of the parliamentary party were asked to engage with their constituents and party colleagues in their local areas on the Budget ahead of a further meeting this summer, where the party is to finalise its overarching priorities.

Meeting the banks

Harris’s meeting with his parliamentary party followed an earlier meeting with representatives from Ireland’s main pillar banks to discuss the rollout of his investment and savings scheme.

AIB, Bank of Ireland, and Permanent TSB representatives attended the meeting, where Harris discussed his plans for the scheme to be detailed in the upcoming Budget.

The scheme is still in its early stages of development, and despite Harris telling The Journal in March he was examining the Swedish scheme as a potential model, economists have since raised concerns around this.

Economists warned an Oireachtas committee earlier this month such a scheme could favour wealthier households and create “another hole” in Ireland’s tax base.

Harris has proposed introducing a personal investment account (PIA) aimed at encouraging people to move savings into stocks and other investments, with a single flat-rate annual tax replacing existing charges like Capital Gains Tax.

It’s understood he explained his objective to the banking representatives today, which is to make investing simpler and more accessible for ordinary people, as well as helping households achieve better long-term returns on their savings.

He said he intends to bring the National Financial Literacy Strategy to the government shortly, which he said is key to the introduction of a retail investment culture in Ireland.

“I was very pleased to have a detailed discussion with the banks and their representatives about our plans to introduce a new investment account in the Budget,” the Tánaiste said following the meeting.

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“Ireland needs a modern savings and investment framework that gives people more choice and helps their money work harder for them over time.

“The Investment Account has the potential to simplify investing for ordinary households and support greater long-term financial resilience.”

Child abuse concerns

In the same meeting, the finance minister also highlighted concerns over revelations that child abuse websites are using paywalls to avoid detection. 

Irish Internet Hotline’s annual report, released today, said an increasing number of online platforms featuring child sexual abuse material are using paywalls and restricted-access systems in an effort to avoid the authorities.

Harris said there is a need for the government and financial institutions to work more closely together on this issue. There is also cooperation required to combat online fraud, he added.

It was agreed between Harris and the representatives that the government, financial institutions, gardaí, and tech companies “must to all it can to work together to disrupt these criminal networks”, he said.

“The revelations today that child abuse material is increasingly being hidden behind paywalls are deeply disturbing and represent a deliberate attempt to evade detection and accountability.

“Financial institutions and payment providers have an important role to play in helping disrupt these criminal networks and protecting children online,” Harris said.