The new Fine Gael leader Leo Varadkar has said next year’s Budget will face cuts after the latest deal on public sector pay.
Speaking after an agreement was reached regarding pay increases for those in the public sector, Mr Varadkar said the capital expenditure will be significantly reduced.
The incoming Taoiseach’s comments come after the proposed three-year deal to replace the Lansdowne Road agreement will see €180m taken out of Budget spending
Mr Varadkar said: “I do think it will allow scope for us to honour the pay deal if it’s agreed, some reduction to the taxation for working families and as well as that some room for improvement in public services and capital expenditure.”
“But what is absolutely the case is that it won’t be possible to do in the next budget everything we would like to do.”