Taoiseach says government hasn't discussed cutting alcohol excise in Budget 2027

Taoiseach Micheál Martin has confirmed that the government has not discussed reducing excise duty on alcohol in Budget 2027. Speaking to the media outside Government Buildings following the first full cabinet meeting after the Dáil’s summer recess, Martin stated that while discussions have focused on income tax matters, the topic of lowering alcohol excise has not yet emerged. This response came amid reports that Minister for Enterprise Peter Burke is advocating for such a move to assist rural pubs. The Taoiseach was asked directly whether he would support the inclusion of an alcohol excise reduction in the upcoming budget. He replied that the issue had not come up during the current discussions. “We haven’t moved into areas like that,” he said, referring to the potential cut. Martin noted that the price of a pint “varies in different locations” and attributed this variation to the industry’s “propensity to raise the cost.” He added that while the government is examining various sectors for potential support measures, the specific proposal for alcohol excise has not yet been raised. Budget 2010 marked the last instance when excise duty on alcohol was lowered, with the rate on a pint of beer decreasing by 12 cents. Since then, no similar change has been implemented. The Taoiseach acknowledged that the decision to reduce excise on alcohol would require careful consideration, especially given its impact on public finances and broader economic factors. In addition to the alcohol excise question, Martin addressed concerns surrounding the carbon tax. Reports suggested the government might delay the annual increase in the carbon tax beyond 2030, extending past the current coalition’s term. However, Martin denied that tensions exist between Fianna Fáil and Fine Gael regarding the matter. He emphasized that the carbon tax revenue is integral to several key programs, including environmental initiatives for farmers and fuel poverty alleviation efforts. The Taoiseach explained that the funds collected through the carbon tax support environmentally friendly farming practices and underpin the national fuel allowance system. He noted that any changes to the carbon tax would need to consider these financial commitments, which are already embedded in long-term planning. Martin also highlighted that grants for retrofitting homes and installing solar panels aim to lower energy costs for households. While some residents have already benefited from these initiatives, others remain ineligible, according to the Taoiseach. Furthermore, Martin criticized recent union actions, stating that the decisions by Siptu and Fórsa to ballot their members for industrial action were “unnecessary and unhelpful.” Despite widespread public sector worker support for strikes, he maintained that the government has consistently expressed openness to negotiations. The Taoiseach reiterated that the government has made it clear to public service unions that they are willing to discuss a new pay deal, with the Minister for Public Expenditure indicating willingness to engage in such talks. As the government prepares for Budget 2027, the absence of alcohol excise reform appears to be a point of contention among certain ministers. Meanwhile, ongoing debates around carbon tax policy and union relations continue to shape the political landscape. With multiple pressing issues requiring attention, the coming months will likely see further developments in these areas.