1/12 The Government released its Summer Economic Statement today, outlining its plans for Budget 2027. On a headline level, the Government plans a package of €8.5 billion, €7 billion of spending increases and €1.5 billion in tax reductions. 2/12 The Summer Economic Statement suggests a package of tax cuts in Budget 2027 of around €1.5 billion. This is slightly larger than the cost of adjusting the tax system so that people do not pay more tax as their incomes increase.

The Covid-19 pandemic is a major shock to public health, the economy and the public finances. The Council’s latest Fiscal Assessment report develops three scenarios out to 2025, building on the Department’s SPU 2020 forecasts. fiscalcouncil.ie/fiscal-assessm… A “Central” scenario, building on official forecasts, where confinement measures ease as planned but with lasting impacts. A “Mild” scenario where conditions improve rapidly, with lasting damage minimised. And a “Severe” scenario with repeat lockdown and wider financial distress.