Behind The Story: What's in Budget 2027 for me?

There was a larger than expected income tax package in Budget 2027 but will the measures result in more money in your pocket?

Deloitte Chief Economist Kate English joins presenters Fran McNulty and Paul Cunningham to analyse the key take-aways of the budget.

The point at which you pay the higher 40% tax rate is going up €2,500 to €46,500. That change means a single person earning €50,000 will now have approximately €500 more in their pockets.

But with inflation currently running at 3.9% - will budget measures like a €10 increase for pensioners really make a difference? Ms English warns that budgets can't aim to keep up with inflation.

"Budgets can’t be about chasing inflation. Unfortunately, a lot of what’s happening in our inflationary environment is out of our control," she said.

"There is a fine balance to be struck between supporting households but also ensuring we are not going too far and further fuelling inflation pressures. Inflation can be a vicious cycle."

The cost of fuel has been in the headlines this year. So does Budget 2027 mean my car will be any cheaper to run? Will my home be cheaper to heat? The temporary reduction to fuel excise rates - worth around 27c per litre for petrol and 32c for diesel - will be extended to February next year.

Ms English said the economy has to support domestic business and households.

"On paper we are running a surplus today. But if something was to change in our corporation tax receipts going forward we could very quickly find ourselves in a position where we are in a deficit."

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