Budget 2027 is a watershed moment for Ireland - Harris

Tánaiste and Minister for Finance Simon Harris believes Ireland is facing a watershed moment in Budget 2027 as preparations for next month's announcement reach their final stages.

Mr Harris will deliver a major economic speech at the Economic and Social Research Institute (ESRI) in Dublin in which he will outline how Ireland's continued economic prosperity is not guaranteed and that only the right choices can ensure the country is shielded from the impacts of ongoing geopolitical upheaval and an ageing population.

The Fine Gael leader's remarks come as bilateral talks continue at Government Buildings between key ministers and members of Cabinet with a view to finalising the specifics of the budget announcement on 6 October.

Mr Harris is to introduce €1.5 billion in new taxation measures while his counterpart, Minister for Public Expenditure Jack Chambers, will announce €7bn in new spending measures.

With the budget just 15 days away, Mr Harris will outline in his speech how Ireland is facing a watershed moment with the country's population to begin ageing rapidly by the middle of the next decade.

He will argue this alongside geopolitical upheaval with Russian aggression, shifting US policy, and Chinese competition, means that key choices now face this country.

"By 2050, just 24 years away, Ireland will look a lot like Italy or Japan does today. In such a society, growth will be lower, costs will be higher and the burden on taxpayers - our children - will be immense," the Tánaiste will say.

"There is no way of avoiding that fate and that is why it is so important that we continue to run surpluses and invest in our sovereign wealth fund."

Mr Harris will also use his state of the economy style speech at the ESRI to acknowledge Ireland is too reliant economically on a few key sectors.

"Everyone knows about the level of concentration in corporation tax receipts, but that is just a reflection of the concentration in our industrial base. We are very reliant on a few key sectors, a few key firms and a few key products.

"Let’s not pretend that’s not the case. What we now need to do is make the right choices for the next steps", he will state while adding that the Irish economy is likely to become more diversified.

Mr Harris will also warn that "we cannot throw money at every problem and expect results" and that only fundamental reform in areas like the delivery of infrastructure can deliver on the quarter of a trillion euro committed to capital spending in the National Development Plan.

He will argue that all of this will underpin the likely moves in Budget 2027, including tax cuts to make work pay, investment in areas like childcare, and the new investment account.

The remarks by Mr Harris come as political attention hones in on the Budget tomorrow fortnight, with Opposition parties to publish their alternative proposals in the days ahead.

The Social Democrats have pushed for an energy windfall tax while Sinn Féin and the Labour Party believe substantial measures are needed to tackle the cost of living.

Independent Ireland says urgent clarity is needed on the future of fuel excise cuts, due to be unwound from 1 November.

People Before Profit claim the carbon tax must be dropped entirely as it penalises ordinary households while Aontú wants the Government to give more targeted support to rural pubs and hospitality outlets.