Jack Chambers (Dublin West, Fianna Fail)

Introduction

Táimid ag teacht i dtír le fada ar na buntáistí a bhaineann le geilleagar oscailte sofhreagrúil a bheith againn. Cé go bhfónann sé sin go maith dúinn mar thír, ní mór dúinn aghaidh a thabhairt ar an timpeallacht eacnamaíoch agus polaitiúil atá ag titim amach níos faide i gcéin. Tá uair na cinniúna buailte le hÉirinn. Beidh tionchar ag an mbealach a roghnaímid le hinfheistíocht a dhéanamh inár gcuid gnóthaí eacnamaíocha inniu, mar aon leis an gcaoi ina ndéanaimid na gnóthaí eacnamaíocha sin a phleanáil agus a bhainistiú sa tír seo go ceann na ndeicheanna de bhlianta.

A Cheann Comhairle, for a long time we have traded on our advantages as a small, open, agile economy. While this continues to serve us well as a country, we must take every opportunity to strengthen the foundations of our economy and our society. Ireland stands at a crossroads. How we choose to invest, plan and manage our economic affairs today will shape our country’s future.

Budget 2026, the first in this Government’s term, represents an opportunity for a renewed economic and fiscal approach, an approach that places the long-term development of our country at its heart and that strives to deliver better outcomes for all. To improve people’s lives, we need to ensure that the decisions we make today are grounded in the best interests of our nation. Our vision is to create a thriving country, where enterprise can flourish and people feel valued regardless of background, ethnicity, sexuality or gender.

This is our opportunity to be a caring country defined by stability, tolerance and progress, for those who were born here and those who have chosen to make Ireland their home. We must challenge the voices who try to use diversity to divide us. Instead, we will continue to celebrate the differences that elevate our cultural identity and our national heritage. This is the flag we must fly, moving forward together.

Economic outlook

In the face of many threats over recent years, our economy and our people have been remarkably resilient. While there are challenges we have yet to overcome, it is important to acknowledge that Ireland is a successful country. We have a strong economy with over 2.8 million people in employment. We have high living standards, long life expectancy, excellent educational outcomes and a progressive system of social supports that work to ensure the most vulnerable are protected. We must safeguard what we have worked so hard to build while striving to become more competitive, protect jobs and create new ones, invest in building more homes and excel as a country that is open for business, investment and opportunity.

Leagann buiséad an lae inniu bunsraith síos do na blianta atá amach romhainn. Tapaímis an deis anois tógáil ar an mbunsraith sin ar mhaithe le todhchaí rathúil a chinntiú do mhuintir na hÉireann.

Medium-term approach

Today’s budget lays the foundations for our future. It shifts the focus from isolated departmental or sectoral needs to our country’s broader strategic priorities, considering the trade-offs and choices we will face along the way. Reforming how we spend public money must be a priority. This is a key focus for me as a Minister and for this Government. It has been central in all my discussions with all Ministers through 2025 and in settling departmental allocations for 2026.

This Government has taken the decision to moderate spending increases, providing more targeted and permanent measures, making the best use of the resources that are available to us. We are doing this to secure the long-term sustainability of our public finances.

BUDGET 2026

The programme for Government is clear in its ambition to secure our country’s future, and today’s budget is an important milestone on this journey. While we cannot do everything in a single budget, the allocations I am setting out today will deliver permanent impacts that make a positive difference to people’s lives while also investing, at record levels, in our future.

Budget 2026 is built on three priorities. First, we will ramp up our investment in vital infrastructure, which will boost productivity, protect jobs and support long-term growth. Second, we will make targeted improvements to public services, making sure that they are reliable, accessible and efficient. Third, as set out by the Minister, Deputy Donohoe, we will strengthen our economic foundations, so we are better prepared to weather future uncertainties.

To support delivery of these priorities, I am allocating €116.8 billion in 2026, an €8.1 billion increase on this year’s allocation. An additional €6.1 billion will be allocated for current expenditure, with the budget for capital projects increasing by €2 billion. The current expenditure package will provide: €2 billion for social protection, to provide for our growing population, expand existing schemes and deliver a series of targeted new measures; €1.5 billion for health, to hire more front-line staff and enhance the level of service being provided; €1.2 billion for public service pay agreements; and a further €1.4 billion to broaden supports across many sectors. Overall, this will support an increase of 12,500 staff to deliver services directly to the public, including 3,370 in the health sector; 2,600 in the education sector; and up to 1,000 in An Garda Síochána. I will also be setting aside €1 billion in a contingency reserve to be held centrally. This will allow us to respond to exceptional in-year expenditure pressures in 2026 and will fund elements of the costs related to Ireland hosting the EU Presidency.

INFRASTRUCTURE

One hundred years ago this year, a fledgling State showed ambition and action. At that time, Ireland faced a very different set of challenges - a young State with scarce resources, emerging from war and conflict. Yet, the State had the courage to commit 20% of its national budget to build Ardnacrusha, one of the most ambitious engineering projects in the world at that time. In the way Ardnacrusha transformed the State then, we are again at the beginning of an infrastructure revolution that will require that bold ambition. We must embrace this opportunity with the belief and confidence that we can shape the destiny of the next generation. This is our duty to the children born here today. We must confront, head on, the systems and mindsets that have made delivery so difficult. Without change, we will see critical shortages of power and water within a few years. Congestion on transport networks will grow. Our ability to deliver more homes will be impacted, as will opportunities for investment and job creation.

To address our country’s infrastructure deficit, we must be prepared to radically overhaul how we deliver public projects. Next month, I will publish a detailed action plan to tackle these barriers to delivery. This will include plans to progress legislative reforms to strike a better balance between the rights of individuals and the public good; simplify regulation and consenting systems to make it easier to deliver projects; and reduce the administrative burden and cut the red tape of our rules and guidelines, so that our own systems are not delaying much-needed investment.

Alongside these reforms, I have provided record levels of funding through the recent national development plan, the largest capital investment plan in the history of this State. Through this plan, Government will provide €275 billion over the period to 2035, prioritising funding for water, energy and transport, the building blocks to deliver more homes. In 2026, I will allocate €19.1 billion for capital investment, an increase of €2 billion on 2025. This will provide funding to progress thousands of new-build social homes and major water infrastructure projects and flood relief schemes; build sustainability and resilience in our electricity grid and boost our electricity supply; and for major projects across the transport, health, education, justice and arts sectors. Details of specific projects to be delivered in 2026 will be announced shortly with sectoral investment plans for the next five years to be published by Departments in the coming weeks. It is critical that we deliver these investments. The urgency with which we need to make progress can so clearly be seen when we look at housing.

Housing, Local Government and Heritage

This Government's absolute priority is to strengthen the foundations for housing delivery and build more homes for our people. In 2026, I am allocating a total of €11.3 billion in funding to the Department of Housing, Local Government and Heritage. Almost €2 billion of this current funding will continue to meet the social housing needs of over 100,000 households, through the housing assistance, rental accommodation and social housing current expenditure schemes.

Within this, I am allocating €7.2 billion in capital funding, the largest ever such allocation for housing. This will include €2.9 billion to support the delivery of thousands of new-build social homes and the second-hand acquisitions programme, and €1.2 billion for the starter homes programme to deliver thousands of starter homes through a range of affordability supports alongside the help-to-buy initiative. Some €300 million will support the regeneration of our towns and urban areas through the urban regeneration development fund, while €205 million will be allocated to a new housing activation infrastructure fund to support the work of the new Housing Activation Office. Some €140 million is being allocated to retrofit further social homes, and €130 million will fund up to 17,000 adaptation grants for the homes of older people and people with a disability. These measures, in addition to the tax changes announced by the Minister, Deputy Donohoe, will make a difference in the delivery of housing across our country but, to build these homes, we need to provide the critical building blocks of water and energy.

Water and Energy

In the national development plan, I have committed to providing €12.2 billion in capital funding to expand our water and wastewater services. Following through on this commitment, in 2026, I am providing €1.4 billion to Uisce Éireann to continue to build essential capacity to support new housing developments and to increase the resilience and sustainability of water supply. This will help to further progress development of wastewater treatment plants right across the country.

I am providing €3.5 billion to ESB and EirGrid to strengthen our energy security and accelerate our transition to renewable energy. Building on this, I am allocating €1.1 billion to the Department of Climate, Energy and the Environment in 2026.

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This includes: €558 million in carbon tax revenue for residential and community energy upgrade schemes; continued investment in the retrofit of public buildings to support the delivery of our national retrofit plan; and €209 million for the climate action and environmental leadership programme to support our climate objectives and enhance biodiversity. Within this, €82 million has been prioritised to support a just transition for the wider midlands region. Projects include decarbonising rural bus routes, support for private bus operators to transition to electric vehicles, wetland restoration and support for nature and biodiversity. Just as our investment in energy lays the foundation for a sustainable future, our approach to transport must ensure that this future is accessible to all.

Transport

Our country’s progress is driven by connectivity. Modern, efficient and effective transport systems unlock the full potential of our towns, cities and communities. Today, I am announcing a €4.7 billion allocation for the Department of Transport for 2026. This includes €940 million for our public transport public service obligation to support our public transport network, connecting communities and people's access to education, work and leisure.

We will continue: the roll-out of the DART+ and BusConnects programmes in Dublin and our regional cities, including the construction of two core bus corridors in Dublin; the Cork area commuter rail phase 1 and the Enterprise fleet replacement projects; several major national road projects, including the Adare bypass, the N5 Ballaghaderreen to Scramogue and the M28 Cork to Ringaskiddy; and a number of major greenway and active travel projects will be funded and developed in 2026.

We will also continue to invest in aviation and maritime connectivity and to provide of a world-class search and rescue service, through the Irish Coast Guard. Additionally, as outlined in the national development plan this year, €2 billion from the infrastructure, climate and nature fund is being allocated to progress MetroLink. Planning for this transformational project has been approved - now it is time to deliver.

BETTER PUBLIC SERVICES

As our infrastructure brings us closer together as a country, our public services bind us as a society. The strength of our public services and what we choose to prioritise is a statement about what we value as a people. Ireland has a social welfare system that protects the most vulnerable, an education system that consistently delivers talent and a health service that contributes significantly to improved health outcomes for many people. This progress has been delivered through consistent investment and targeted decision-making across many years and has raised the standards and expectations for what can be delivered. While it is important to acknowledge what works well, we must continue to focus on improving our systems of social support.

Social Protection

The Government cares about our people and has designed a progressive budget that delivers permanent and targeted social welfare measures that will shield the most vulnerable against cost-of-living rises. I am pleased to be able to provide for a Christmas bonus for 1.5 million recipients of long-term social welfare schemes this year. This will be paid at a rate of 100% of the normal weekly payment and will provide much-needed support to families over the seasonal period. Next year, I am allocating €28.9 billion to the Department of Social Protection, an increase of over €2 billion. This allocation allows me to provide an increase of €10 per week for a person receiving a weekly social protection payment. This will benefit 1.5 million recipients, including pensioners, people with disabilities, carers, jobseekers and lone parents.

To support people with disabilities and carers, I am increasing the carer's allowance income disregard to €1,000 for a single person and €2,000 for a couple. I am increasing the rate of domiciliary care allowance by €20 to €380 per month.

In the programme for Government, we have committed to lift more children out of poverty. Guided by a new child poverty target of no more than 3% of children living in consistent poverty by 2030, a multi-year programme of supports begins today. I am happy to announce a €300 million package of supports for children and families. As part of this, I am increasing the weekly rates of the child support payment by €8 for children under 12 and by €16 for children over 12, the largest ever increase in this rate.

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