Urgent: Budget 2026 Announced, Middle-Income Workers Left Behind

UPDATE: The Irish government has just announced its Budget 2026, revealing significant cuts in VAT and increased public spending, but leaving middle-income earners with little to celebrate. Many individuals who benefited from tax changes and cash giveaways of up to €3,000 last year will find themselves without similar relief in this year’s budget.

In a presentation by Minister for Finance Paschal Donohoe and Minister for Public Expenditure Jack Chambers on October 10, 2023, the government unveiled a series of VAT cuts targeting the hospitality sector, energy, and new apartment sales. While spending is set to rise by a remarkable €9.4 billion to a total of €117 billion, critics are questioning the adequacy of support for ordinary citizens facing rising living costs.

The budget allocates an additional €2 billion for social welfare and €1.2 billion for health services, alongside plans to hire an extra 13,500 public servants, bringing total public employment to 440,000. The government projects a €5 billion surplus, bolstered by growing tax revenues, especially in corporation and income tax.

Despite these figures, the budget has drawn fierce criticism. Opposition spokespersons have branded it a failure to address crucial needs.

“The Government’s big message in this budget is that people are on their own,”

said Pearse Doherty, Sinn Féin finance spokesman. He accused the government of ignoring pressing issues like the cost-of-living crisis and broken election promises.

Labour Party finance spokesman Ged Nash described the budget as catering to large businesses rather than ordinary workers, calling it a “budget for burger barons and big builders.” Similarly, representatives from essential services like nursing and teaching expressed dismay over the lack of recruitment funding, suggesting that the VAT cuts could have funded thousands more in their fields.

The Disability Federation of Ireland highlighted that the elimination of one-off supports will negatively impact those unable to work. While welcoming a €600 million increase for disability services, they lamented the overall budget as a significant setback for disabled individuals.

In contrast, business groups such as Ibec praised the budget’s emphasis on innovation and job creation. Michael Stanley, CEO of Cairn Homes, stated that the VAT cuts could make many planned housing projects viable, potentially increasing the value of new apartments by up to €80,000.

This budget marks the first of five planned by the Coalition, with Donohoe emphasizing the need for prudent financial choices. “Every budget is about choices. No budget can do everything, nor should it attempt to,” he stated, framing the budget as a necessary step to secure Ireland’s future.

As the implications of Budget 2026 unfold, many citizens are left wondering how the government will address the growing pressures of daily life. With responses from various sectors pouring in, the debate over the fairness and adequacy of this budget is likely to dominate discussions in the coming days.

Stay tuned for further updates as reactions continue to develop and officials respond to growing public concern.