Tánaiste Simon Harris has defended a new levy requiring Government departments to implement efficiency savings, saying all members of the Cabinet are aware of their collective responsibilities.
The expenditure levy, which will take effect from 2027, will require departments to fund the increased spending allocated to the Department of Education through internal reforms and efficiencies, reports Breaking News.
Asked whether Fine Gael parliamentary party members had expressed concerns about the drive to cut spending, Harris told reporters: “Every member of the Government is well aware of their responsibilities as members of the collective Cabinet,” reports Breaking News.
“We have to live within the resources that are available to us. The decision to invest more money in education is a really good one. You will never, ever, ever regret spending hundreds of millions of euro more on special needs assistants, special classes, special teachers, resourcing education,” reports Breaking News.
He added that it was entirely reasonable, at a time of extraordinary levels of public spending, to ask those working in the public service whether there were opportunities to find savings and operate more efficiently, reports Breaking News.
He said the notion that savings could be found during a recession but not during a period of expansion did not stand up to scrutiny from the taxpayer’s perspective.
Harris also said he was closely monitoring inflation risks linked to the ongoing conflict affecting energy supplies, and that his department’s projections broadly aligned with AIB estimates that inflation could reach between 6 and 7% in the most adverse scenario if oil supply disruptions continued for a sustained period.
He added that the most meaningful economic intervention would be de-escalation of the conflict and a restoration of normal energy flows, reports Breaking News.
Harris also outlined that Budget 2026 would carry approximately €7 billion in additional expenditure, with the split between tax measures and spending to be agreed in the Summer Economic Statement, reports Breaking News.
He confirmed the budget would include a personal income tax package and progress on the Government’s commitment to reducing childcare fees to €200 per child per month, reports Breaking News.
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