THE GOVERNMENT WILL release its Summer Economic Statement this afternoon, which will indicate the health of the public finances ahead of the next budget in October. 

Tánaiste and minister for finance Simon Harris has indicated there will be tax cuts in the upcoming budget and today’s statement will set out how much room there is for those reductions.

The Summer Economic Statement essentially kicks off the negotiations between different government departments over the budget, which is set to be announced on 6 October. 

Harris, public expenditure minister Jack Chambers and the chief economist at the Department of Finance, John McCarthy, will hold a press conference at 1pm today to make the announcement.

Ministers will be briefed on the statement at Cabinet beforehand.

Harris has said in recent weeks that one of his priorities for this year’s Budget is to put more money back in ordinary workers’ pockets via a tax package. 

Chambers is expected to inform his colleagues today that overall spending for Budget 2027 will increase by €7bn compared to last year, with the increase used to fund public services and deliver new infrastructure including homes, roads, public transport, water and energy security. 

Speaking to RTÉ’s Today with David McCullagh show yesterday, Harris said the summer statement was “pivotal”. 

He said he had made “no secret of the fact” that he intends to change income tax levels. 

In early July, Harris said: “We still pay the higher rate of tax in this country at too low a level. Now, it was about €33,000 back in 2015, it’s now €44,000. I would like to see progress on that in the budgets ahead.”

Last time round, the government chose to reduce taxes for the hospitality sector by cutting the industry’s VAT rate from 13.5% down to 9%. 

In the budget to come, it looks like income tax is next in line for a reduction.

Contains reporting by Jane Matthews.