Social infrastructure a key priority for Budget 2026

In response to global trade uncertainty Government must focus on protecting the vulnerable and investing in social infrastructure.  Changes to the global economy and trading uncertainty regarding trading conditions are the backdrop to Budget 2026.  What is certain, is that Government, in its first budget, should prioritise investment in social infrastructure and the protection of vulnerable groups to deliver the progressive budget that it has committed to in the Programme for Government.

Context for Budget 2026
Budget 2026 must be guided by the principle of fairness. We are wealthier than at any time in our history, and yet almost 630,000 people are living below the poverty line, 190,000 of whom are children. Almost 16,000 people are in emergency homeless accommodation.  Now is the time for Government to show ambition in delivering on its promises by running a progressive budget, properly funding public services and infrastructure and investing in policies that will make a positive difference to people and communities. 

Priorities for Budget 2026
Despite a backdrop of global trade uncertainty Ireland is in a strong economic position, with strong GDP and GNI* figures and a strong labour market performance.  Government must use the resources generated by our strong economic performance in recent years to address longstanding social and infrastructural challenges.

The underlying budget position, excluding expected corporate tax windfalls, is in deficit.  The unsustainability of this fiscal position at a time of full-employment, strong consumption and continued economic growth is a major concern.  It raises questions about future economic policy, and how we will fund the infrastructure and services required to meet the needs of a growing and ageing population.

Government should use Budget 2026 to set a new tax take target on a per capita basis as a first step towards planning for a sustainable tax take and developing a broad tax base.  Through the adoption of recurring taxation and expenditure measures which prioritise fairness and protection of the vulnerable, Government can begin to deliver on its promise to fund adequate levels of current and capital expenditure growth to meet the needs of our growing population and its commitment to increase public sector investment to address infrastructural deficits.

In terms of infrastructure, at a minimum, Budget 2026 must outline a medium-term plan of one-off investments in our social and physical infrastructure to deliver social and affordable homes, and upgrade our water and energy infrastructure, funded from one-off windfall corporate taxation revenues. 

Prioritising the vulnerable and the common good
Government must use Budget 2026 to fulfil the Programme for Government commitment to deliver progressive budgets by prioritising fairness and the common good.

This requires benchmarking social welfare rates to average earnings and progressive taxation policies and measures in a fair tax system.  Looking at permanent changes in taxation and welfare over the period 2020-2025, budgetary policy has led to the deterioration in the relative standing of low and middle income households and a widening of income gaps between those on low and high incomes. Reversing this trend must start in Budget 2026.

Adequate increases in social welfare rates must be a budgetary priority.  Minimum social welfare rates must increase by €25 per week in the budget. This is the increase required to benchmark welfare rates to average earnings and support those households most impacted by persistent high prices.  Even with falling rates of inflation, prices will remain high placing real pressures on household budgets. What is needed is certainty and permanence for those reliant on social transfers, not more temporary measures.