Tax Cuts Expected In Budget, But Economic Headwinds Cloud Government’s Spending Plans

Tuesday, 22 July 2025 14:46

By Martin Osborne

Meanwhile, the government has allocated almost 275 billion euro in capital spending over the next decade in a revised National Development Plan.

The government estimates it will have 1.5 billion euro to implement tax cuts in October's Budget.

The Summer Economic Statement also outlines almost 8 billion euro in new spending.

However, the document comes with a warning the public finances are not as healthy as they seem, and if the situation with tariffs changes, they will have to revisit those figures.

Meanwhile, the government has allocated almost 275 billion euro in capital spending over the next decade in a revised National Development Plan.

Individual projects won't be announced until the Budget - but money has been set aside for Dublin's Metrolink, as well as water and electricity investment.

112 billion euro will be spent over the next five years, with ministers saying they will prioritise capital investments if the economy enters choppy waters.

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