The Last Word with Matt Cooper Have Workers Been Shortchanged In Budget 2026?
Oct 7, 2025
Paschal Donohoe, the Minister for Finance, joins to discuss the contentious details of Budget 2026. He defends the allocation of resources, emphasizing priorities like homes and jobs, despite criticism from opposition parties. The conversation dives into the controversial timing of VAT cuts and how they aim to protect small businesses. Donohoe also elaborates on the complexities of energy VAT amid rising costs and the government's approach to spending, highlighting both fiscal caution and the necessity for public service funding.
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Prioritising Homes And Jobs Over Tax Cuts
- Paschal Donohoe prioritises tax measures to build homes and protect jobs rather than broad personal tax cuts.
- He argues taxpayers also value public investment in housing and employment over immediate income tax relief.
VAT Relief Aimed At Small Hospitality Firms
- Donohoe expects VAT relief to protect viability of small hospitality businesses, especially outside large cities.
- He emphasises the social and economic importance of small cafes and restaurants to towns and villages.
Stagger Measures To Manage Inflation Risk
- Donohoe delayed the VAT change until July to fit within a €1.5bn tax package and limit inflation risks.
- He advises that the VAT cut will have no sunset date, signalling permanence once implemented.