Minister Jack Chambers warns Budget will have limited room for tax cuts, with priority on housing

"Mr Chambers admitted it would be "much more challenging" to assess the benefits for families this year given the tighter fiscal parameters facing the Government - with taxpayers promised last year that Budget 2025 would benefit them by around €1,000. "Providing a figure like that is more challenging this year, to be frank," he said. "There is a more limited scope (this year) for changes on income tax.""

"A lot of our focus will be through the social protection system and investment in public services and how we improve the day to day experience of families. The nature of the tax package will be a little different his year," he said. "Part of that will be to drive competitiveness in the economy....but I am not in a position to give any figure like that.""

"We have a very limited tax package of €1.5bn and there are a lot of measures which have to fit within that (for Budget 2026), he said. "There is more limited scope this year than last year. "Also, we are also cognisant of international uncertainty about major changes from a tax perspective and what that risks in the medium term. "I think we have to be responsible in managing the risks that are there in the Irish economy.""

Assessing family benefits for Budget 2026 will be more challenging due to tighter fiscal parameters and reduced scope for income tax changes. Investment commitments in infrastructure, housing and VAT reductions for hospitality have absorbed significant fiscal flexibility, leaving a constrained €1.5bn tax package. Policy emphasis will shift toward social protection, public services and measures to improve families' day-to-day experience, while aiming to support competitiveness. International uncertainty over major tax changes and medium-term risks require caution in fiscal management. The Government will specifically target housing measures in Budget 2026 as a priority.

Read at Irish Independent