Budget 2026 live updates: Cork road and public transport projects to receive funding

2.15pm

Mr Chambers, minister for public expenditure, said he is allocating €116.8 billion in 2026, an €8.1 billion increase on this year's allocation.

He outlined some more headline figures: €1 billion in a contingency reserve, €2 billion for social protection, €1.5 billion for health and €1.2 billion for public service pay agreement adjustments.

This will support an increase of 12,500 public sector staff including over 3,370 in the health sector, 2,600 in the education sector, and up to 1,000 in An Garda Síochána, he said.

Budget 2026 will allocate €11.3 billion in funding to the Department of Housing, Local Government and Heritage which will go towards the delivery of new build social homes, social support programmes, starter homes programme, urban regeneration development, a new housing activation infrastructure fund, retrofitting social homes and adapting homes for older people and people with disabilities.

A total of €12.2 billion in capital funding will expand water and wastewater services, with €1.4 billion to Uisce Éireann, €3.5 billion to ESB and Eirgrid, and €1.1 billion to the department of climate, energy and the environment.

The weekly fuel allowance rate will go up by €5, and eligibility for the allowance will be extended to all households in receipt of the working family payment.

The working family payment itself has seen income thresholds increase by €60 a week, and the back to school clothing and footwear payment will be widened to include two and three year olds.

The Christmas double social welfare payment will be provided again this year.

A total of €4.7 billion will be allocated to the Department of Transport, with €940m going towards funding and subsidising existing public transport services.

Next year's funding will also go towards the continued rollout of Bus Connects and the first phase of a commuter rail programme to expand capacity in the Cork area, while road projects including the M28 Cork to Ringaskiddy road were mentioned, and there will also be a number of major greenway and active travel projects funded and developed in 2026.

A record level of total funding of €27.4 billion will be allocated to the Department of Health, going towards an increase in acute hospital capacity of at least 220 beds and the expansion of diagnostic services.

At least 280 community beds, investment in the community nursing units refurbishment programme, and reductions in community waiting lists will also be prioritized with this funding, as well as an additional 1.7 million Home Support Hours, 500 more nursing home places, increased staffing and expansion of mental health services, increased access to CAMHS and improved community and primary care services.

2pm

The minister for finance has announced an increase to carbon tax - a tax of €71 per tonne of CO2 emitted will be applied to auto fuels, effective from tomorrow.

Excise duty on a pack of cigarettes will increase by 50 cent, with a pro rata increase on other tobacco products.

Mr Donohoe also announced €200 million of additional external funding for Home Building Finance Ireland, which provides finance to homebuilders across the country.

The €5,000 VRT relief for electronic vehicles will be increased by a further year to the end of 2026, and a new vehicle category for zero emission cars will be created.

Mr Donohoe commended his budget to the house. Jack Chambers begins his speech at ten to two, saying: “We must take every opportunity to strengthen the foundations of our economy.

“Ireland stands at a crossroad,” with decisions made now to determine the future of the country, he said, adding that their decisions are grounded in the best interest of the nation.

Their aim is to ensure the most vulnerable in Irish society are protected while striving to make the country more competitive, protect jobs and create new ones, as well as focus on building homes, he said.

1.45pm

Mr Donohoe noted “we are exposed to external economic downturns,” in Ireland, stating the importance in investing in Irish businesses.

The minimum wage is to increase by 65c to €14.15 as of January 1 2026. The USC 2% rate band rises to €28,700 to ensure full time workers on minimum wage will remain outside top rate of USC and giving modest benefit to workers whose income is above that amount.

The Government “will stand by” commitments to make changes to income tax over the next years of his term, but none will come in today’s budget.

The VAT rate on food and catering businesses and hairdressing services will be reduced from 13.5% to 9%. This will come into effect in July next year, and will cost €681m per full year, but lead to additional jobs in these industries, he said.

The rate of the Research and Development Tax Credit will be increased from 30% to 35%, while incentives have also been announced for film and game industries through tax relief and tax credits, respectively.

The bank levy is being extended for one further year, with a target yield of €200million.

1.30pm

Housing is the first item on the agenda - Finance minister Paschal Donohoe tells the Dáil that the Government is committed €5bn in capital investment for housing delivery in 2026.

The government will be reducing vat rate as applied to the sale of completed apartments to 9% from 13.5% for completed apartments, to deliver more and higher density apartments.

There will also be a corporation tax deduction on the construction of apartment developments, and rental profits from homes that fall within the cost rental scheme are to be exempted from corporate tax.

To tackle dereliction, a new derelict property tax will be introduced. It will be implemented and collected by revenue, to replace the derelict site levy, currently charged at a rate of 7% of site market value. The new tax will not be at a lower rate than this, Mr Donohoe said.

The involvement of revenue in derelict site levy collection has been called for by opposition TDs and representative groups for many years, due to a very low rate of payment of the levies, which were formerly charged and collected by local authorities.

The Residential Development Stamp Duty refund scheme will be extended to the end of 2030 and the income tax deduction for small landlords who retrofit their properties will be extended for three years.

The rent tax credit will also be extended by a further three years to the end of 2028, while the mortgage interest tax relief will be extended for a further two years.

1.15pm

The Dáil chamber is full for the delivery of this year’s budget.

Finance minister Paschal Donohoe speaks first, and will deliver a speech of around 45 minutes, which you can watch live on the Oireachtas website. Public expenditure minister Jack Chambers will give a statement after this.

Mr Donohoe promises that the budget will “invest in our future while securing the jobs, prosperity and stability of today”, adding that it will “tackle the serious challenge of meeting our housing needs… while preparing for tomorrow.” He reflected on progress made in the county in areas including employment but stated that there are challenges including around housing and cost of living.

“Uncertainty is the defining feature of the world this year”, he said, mentioning the tariffs imposed by the Trump administration this year, which he called “regrettable”. While praising the EU US agreement, he said that tariffs will have an impact in the years to come, and that this year’s budget has been created with this in mind.

The budget will protect jobs, with the expectation of adding 63,500 jobs this year, as well as growth in real wages, he said, adding they were “acutely aware that prices remain high”, saying that the budget will address this through targeted supports for those most in need.

Overall, the budget will be €9.4billion euro, he said.

12pm

The Government will outline its annual Budget shortly, amid scrutiny of its tax and expenditure priorities.

It has set parameters for a planned package of €9.4 billion in Budget 2026, including €7.9 billion in additional public spending and €1.5 billion envelope for tax measures.

The Central Bank, Irish Fiscal Advisory Council (IFAC) and Economic and Social Research Institute (ESRI) have raised concerns about the risk of the planned Budget package overheating the economy.

Finance minister Paschal Donohoe and public expenditure minister Jack Chambers will attempt to allay those fears as they reveal the Budgetary measures in the Dáil from 1pm.

Certain features of the Budget have already been well trailed, with Mr Donohoe outlining that there will be no changes to personal taxes, adding that indexation would have taken up the majority of overall the tax package.

It is expected, however, that the Government will move to cut Vat for food-led hospitality from 13.5% to 9%, after a long-running campaign for a sector which has sought to highlight a rising cost of business.

Businesses say the proposal, which will exclude accommodation and is expected to kick in in July rather than January, is necessary to protect jobs.

The Government is also expected to announce a Vat cut for new-build apartments in an effort to drive delivery of housing.

Elsewhere on housing, ministers have highlighted the importance of the renters’ tax credit, which would be due to expire if not extended on Tuesday.

However, in the first Budget since the election returned Fianna Fáil and Fine Gael to Government, coalition figures have warned that there will be no repeat of a bumper cost-of-living package containing other “one-off” universal measures such as energy credits.

The Government has instead said its approach will focus on more targeted and permanent measures.

Students will be looking to see if there is any permanent cut to student fees, although any reduction below €1,000 may be seen as a year-on-year increase after a temporary cut of that amount expires.

Another closely watched measure is the extent of an increase to core social protection rates, with a Christmas bonus also regularly featuring in recent budgets.

Amid regular budget staples like a duty increase for cigarettes, moves to make a trialled scheme of basic income for artists more permanent could also feature.

At the conclusion of the ministers’ speeches, opposition parties – who have set out their own alternative Budgets in the preceding week – will have the opportunity to respond and critique the coalition’s plan for the year ahead.