€40BN FOR HOUSING UNDER NEW INFRASTRUCTURE SPENDING PLAN

The Government is due to announce the details of a flagship plan to build infrastructure over the next five years, with around €40 billion being allocated towards housing.

The revised National Development Plan will contain €100bn funding for housing, energy, water and transport projects from 2026 to 2030.

Around €30bn of that figure is said to be new funding, some of that coming from the Apple tax money and the sale of AIB shares.

Housing delivery is the centrepiece of the plan, with increased funding to build homes and accompanying electricity and water connections.

The Cabinet will meet this morning to agree this framework for infrastructure investment.

With Departments set to be allocated funding for capital projects, ESB Networks and Uisce Éireann are also set to benefit.

There will be a major increase in defence spending, with a focus on radar, sonar and force protection for Irish troops. Dublin’s Metrolink will also receive funding.

Separately, the publication of the Government’s Summer Economic Statement will outline how much money will be set aside in the Budget for tax cuts.

It comes as Minister for Finance Paschal Donohoe has been increasingly cautious about the public finances due to the threat of escalating tariffs from the US.

The statement will set out how much tax will be collected and how much will be allocated to capital and current spending.

The Department of Finance said it is focused on maintaining the stability of the public finances amid increasing uncertainty.

It said the Government will continue to put money into the Infrastructure, Climate and Nature Fund, and the Future Ireland Fund.

It said: “As a small open economy, we are vulnerable to external developments. This is why it is crucial that we have the resources available to maintain capital investment even in the event of an economic shock.”

Much attention today will be on the scope for tax cuts next year.

A lot of that could be absorbed by a VAT reduction for hospitality, which the Coalition committed to introduce in its Programme for Government.

Mr Donohoe has also ruled out one-off cost-of-living measures, a step which has drawn criticism from the Opposition.

The Department of Finance said: “We are delivering on the Programme for Government commitment to increase capital investment in key areas, improving people’s quality of life, boosting competitiveness and helping to attract and retain investment.

“At the same time, we will continue to use the resources available to us to invest record levels of public money across the public service, improve healthcare, education and social protection.”

Minister for Public Expenditure Jack Chambers will outline expenditure plans for the coming year.

He will say the Government is “moving away from the one-off measures of the past”.

He will also say the measures in Budget 2026 will be permanent and sustainable “as well as targeted measures for those who need the most support.”

RTE News

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Michael McDonnell Managing Editor of Irish Construction Industry Magazine & Plan Magazine

Email: michael@irishconstruction.com      WWW.MCDMEDIA.IE