Paschal Donohoe (Dublin Central, Fine Gael)

For example, the allocation for the warmer homes scheme, which provides completely funded retrofits to low-income households, has seen an eleven-fold increase relative to where we were in 2020.

We are also making huge progress on solar generation. Today, there are over 140,000 households with solar PV installed, providing greater energy affordability for these homes, both by reducing their own energy demand and allowing them to sell excess energy into the grid.

Support for the Adoption of Electric Vehicles

In support of increasing the number of electric vehicles on our roads, I am extending the €5,000 VRT relief for electric vehicles for a further one year until 31 December 2026.

In relation to the benefit-in-kind, BIK, regime for company cars, I am extending, on a tapered basis, the universal relief on the original market value of a vehicle, which was first introduced as a temporary measure in 2023. The relief will remain at €10,000 in 2026. It will reduce to €5,000 in 2027 and €2,500 in 2028, being abolished in 2029. I am also creating a new vehicle category for zero-emission cars only, where the lowest BIK rates will apply.

Accelerated Capital Allowances Schemes

To encourage further capital investment to help deliver a reduction in emissions, I am extending the accelerated capital allowances scheme for energy-efficient equipment and for gas vehicles and refuelling equipment for a further five years until 31 December 2030.

Micro-generation of Electricity

To help as many citizens as possible to play a role in the energy transition, I am extending the income tax disregard of €400 for income received by households who sell electricity from micro-generation back to the grid for a further three years to the end of 2028.

OTHER MEASURES

Pool Betting Duty

The new Gambling Regulatory Authority will be responsible for licensing and supervising the betting sector. Pool betting is restricted to just two entities currently, but under the new regime, a wide range of licenceholders may be authorised to engage in pool betting. I am concerned that betting operators may be incentivised to modify their business structures to avoid liability to betting duty, so I will legislate in budget 2027 for a separate pool betting duty charge. This will provide time for engagement between my Department and relevant stakeholders on the design and structure of this duty.

Tobacco

To support public health policy to reduce smoking in Irish society, I am increasing excise duty on a pack of 20 cigarettes by 50 cent, with a pro rata increase on other tobacco products.

Conclusion

A Cheann Comhairle, our public finances are in good shape overall. Our employment is at an historically high level. Our schools, our hospitals and our public services are responsible for so much good in our society. But we must build more homes. We must help those who need our help in a more targeted way. The Minister, Deputy Chambers, and I make the case for that in this budget, for a budget that builds on what is good in our economy to achieve more for our country and for its citizens, today and in the future. This budget will boost our resilience. It will protect jobs. It puts us in the best possible position to create a stronger and more competitive economy while meeting the needs of our people today and in the time to come.

To achieve this, a budget must make choices. Any budget that attempts to achieve everything in a single go weakens our ability to be safe in a turbulent world. This is why we make the case for running budget surpluses and for setting up funds for the future. Not for some abstract reasons, but because this approach gave us the ability to help in the toughest of moments in recent years, and it will do so again. That is why we have to strike the right balance between increasing investment and moderating the growth in day-to-day spending. That is why our tax changes must be of a certain value, and no more.

That is why now is the time to steady ourselves on the path for the future. In this and future budgets, the Minister, Deputy Chambers, and I, with the Taoiseach, the Tánaiste and Independent colleagues, will continue to stay on the path to support growth and to maintain safe public finances. We will do this because this, in turn, offers the best protection and best support for our people. Through our investment in people, jobs and homes, we are determined to meet the challenges that we face today and to realise our hopes and our ambitions for tomorrow. I commend budget 2026 to Dáil Éireann.

See this speech in context