As budget day nears- we speak to public expenditure minister Jack chambers JOD

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What are the main priorities of the upcoming 2027 Irish budget?

David McCullagh 0:00

Now, from football to finance, Jack Chambers, Minister for Public Expenditure, Infrastructure, Public Service Reform and Digitalisation. Good morning. Good morning, David. Thank you. 11 days to Budget 2027 on Tuesday week. The government is under pressure to help with the cost of living, reduce energy costs, cut taxes, improve public services, invest in infrastructure, put money aside for a rainy day and keep control of spiralling public spending. No pressure.

Jack Chambers 0:25

Well, look, the first thing is a lot of people are under pressure and we hear that and understand it. And that's why the central focus of the budget is to help people with the cost of living, but to prioritise that. So there are trade-offs and choices and we have to ensure we get the balance right and ensuring that the overall level of spend in the economy delivers better value for taxpayers and we deliver services better. And that's why I've put reform and efficiencies and wider productivity at the centre of all the discussions I'm having with ministers today. but also how do we help people over the winter period? And it is getting the balance right between the short-term demands and the pressures of today with ensuring that we protect Ireland in a period of significant risk within the global economy.

Jack Chambers 1:03

We've got rising inflation, higher interest rates, broader risks around AI and significant headwinds and a continued energy shock. And I think people understand that the government can go somewhat to helping on a day to day basis. But ultimately, we need to ensure we protect the long term growth and prosperity of the economy. And that's at the centre of what we're doing as well to make sure every decision we make is safe, sustainable and affordable. And that's why infrastructure and housing are also central to how we build that growth for the economy in the long term.

David McCullagh 1:36

OK, we'll get to that in a minute, but you probably saw that poll in the Irish Times yesterday where people were asked what their priority was for the budget. 23% said energy and heating supports, 12% wanting you to extend the excise cuts. So that's what, 35% that the cost of energy is the key issue for them. That's what they say is the top priority. Is it for

Jack Chambers 1:56

you? It is absolutely one of the priorities. And in all of our discussions, we're seeing how do we target the limited amount that's available to help people.

How is the government planning to protect low‑income households with fuel and heating allowances?

Jack Chambers 2:05

So that's why we're examining, for example, changes to the fuel allowance, which help the lower income households in our country. How can we give people certainty on petrol and diesel through the winter period and potentially looking at a further extension of excise into the early spring period. And then thirdly, we know that home heating oil is a specific issue for many families that have no alternative. And that's why we're examining how we treat home heating oil in the context of the carbon tax. And also Minister O'Brien is working on a package that tries to enhance the grant supports to provide sustainability for families with energy,

David McCullagh 2:39

Jack Chambers 2:39

terms of their energy costs, and that's another consideration of government.

David McCullagh 2:42

The idea of giving people certainty is all well and good, but unfortunately, a lot of it is out of anybody's control, as it depends on what happens in the straightforward moves. So even if you extend the excise costs, even if you defer carbon tax increases, the price of diesel could still be still above €2. It could,

Jack Chambers 2:58

no, and I have to be honest about that. We cannot and we will not be able to chase... every global price change. And that's why we've actually made one of the bigger interventions in Europe because we have the ability to do so because we're running surpluses. But we need to ensure that we manage and get the balance right and that we can't compromise doing the right thing for the long term in terms of protecting capital investment, for example, ensuring we continue to develop public services. So it is the balance of the various considerations. I think people understand that too, that we can't insulate every price change globally.