Budget 2027 to include ‘tax package for families’ and ‘groundbreaking’ disability payment

Taoiseach Micheál Martin confirmed that Budget 2027 will feature a dedicated "tax package for families" alongside what he described as "groundbreaking" reforms to the disability payment system. The announcement comes amid growing pressure on the government to address rising living costs and economic uncertainty caused by the ongoing conflict in the Middle East. Martin made these remarks during discussions with Independent TD Michael Lowry, who outlined key demands for the upcoming budget in the Dáil on Wednesday. Lowry emphasized the importance of providing relief to working families, particularly those in the "squeezed middle," who he argued are being unfairly impacted by the existing tax structure. He pointed out that income tax bands and personal tax credits have remained unchanged, leaving many workers struggling to make ends meet. Lowry urged the government to introduce a meaningful tax package by October that would allow workers to retain a larger portion of their earnings. He also called for targeted support for individuals with disabilities, who face unavoidable extra expenses in areas such as transportation and healthcare. Martin acknowledged the challenges posed by the Middle East crisis and its impact on inflation and consumer prices. He stated that the government would strive to ease financial pressures through the budget, including the proposed tax adjustments for families. The Taoiseach noted that Minister for Social Protection Dara Calleary is currently examining the feasibility of overhauling the disability payment system, describing the initiative as "groundbreaking." However, he cautioned that the process involves complex considerations and requires open consultation with stakeholders before final decisions are made. In addition to tax reform, Lowry raised concerns about the current inheritance tax framework, which he labeled as "penal" and "not fair or equitable." He advocated for changes that would enable families to transfer property, farms, or businesses without facing excessive tax burdens. Lowry also suggested that individuals without children should not be disproportionately taxed when passing on inheritances to extended family members such as nieces, nephews, or close relatives. The TD further stressed the need to integrate the self-employed into the My Future Fund pension scheme or an equivalent program that would offer them comparable opportunities to secure their retirement. He criticized the inefficiency of public spending, stating that wasteful expenditure exacerbates the hardships faced by citizens dealing with high living costs. Lowry directed attention to Minister for Public Expenditure Jack Chambers, urging him to implement measures aimed at reducing unnecessary government spending. Economic growth figures underscored the significance of the upcoming budget. As of the latest data, 2,794,500 people are employed in Ireland, marking a 10% increase since 2020 and a remarkable 53% rise compared to 1995. With the population surpassing 5.5 million, Martin emphasized the necessity of maintaining job availability and economic momentum. Despite concerns surrounding artificial intelligence's potential disruptions, he expressed optimism following Intel's recent €5 billion investment, highlighting the company's focus on AI-driven innovation. Martin criticized the lack of discussion regarding the Intel investment within the Dáil, suggesting that the legislative body is disconnected from contemporary economic realities. He reiterated the government's commitment to reviewing policies affecting small and medium-sized enterprises, with a dedicated forum exploring ways to lower operational costs and streamline regulations for these crucial sectors of the economy.