Future spending plans ‘don’t add up’ – Opposition

Opposition parties have claimed the Government’s summer economic statement and future spending plans “don’t add up”.

They said the coalition should “rethink” its policy promises before the 6 October budget and described the potential spending as “McCreevy economics all over again”.

Sinn Féin, Labour and the Green Party all criticised the economic statement details, saying there is a need to focus on responsible spending and practical changes to Ireland’s finances.

Minister for Finance Simon Harris and Minister for Public Expenditure Jack Chambers confirmed there will be €7 billion of spending increases in budget 2027, including €5.9bn in day-to-day spending and €1.1bn in capital infrastructure such as energy, water and transport.

This will bring total expenditure next year to €125bn, up 5.9% compared to this year, while there will also be €1.5bn available for tax cuts in the budget.

The Government has stressed the €8.5bn total spending and tax package outlined in the summer economic statement will be in line with the coalition’s medium-term financial framework which outlines planned limits on spending levels.

However, Opposition parties criticised the announcements.

“The Taoiseach and Tánaiste cannot seem to pass a microphone without musing on inheritance tax cuts and a new savings and investment scheme, the details and cost of which remains a secret,” Labour’s Spokesperson on Finance Ged Nash argued.

“These wild pledges are irresponsible given that there will be little change out of €1.2bn if the Government is serious about adjusting the point at which workers start paying the top rate of tax. Put simply, Simon’s sums don’t add up.

“On the current spending side, the truth is that the allocation set out in the statement will barely keep the show on the road for our schools and hospitals, taking us no closer to delivering on childcare fee caps of €200 per month,” he said.

Mr Nash added that it is also instructive that the “statement seems shy when it comes to any potential successor to the recently expired public sector pay deal”.

This view was shared by Sinn Féin’s Spokesperson on Finance Pearse Doherty, who said he believes the coalition should “rethink” its plans before the budget.

“I think it’s deeply disappointing that the Government have come forward with a budgetary package for next year that is smaller than last years, it shows that they’re really out of touch and don’t understand the pressures ordinary people are under.

“The Government seriously need to rethink this between now and budget day. We need to make sure the money is spent properly,” he said.

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Green Party Spokesperson on Finance Michael Pidgeon described the spending as “[Charlie] McCreevy economics all over again”.

“Ireland is being set up for a fall. Government spending is skyrocketing, without reliable tax income to back it up.

“We’re deepening our dependence on a small number of US firms in just two sectors.

“The Tánaiste is promising tax cuts without long-term planning to bring down the cost of living permanently,” he said.

“This is McCreevy economics all over again, pumping out all available money with nothing set aside for the future. We’re risking a return to a 2008-style crash in public finances.”