Advertisement

Budget ’27: Donegal braced for impact amid rising costs

WORKERS, families, and businesses across the county will find out tomorrow how they are going to be impacted by Budget 2027.

International events – including the wars and conflicts involving the US, Iran, Russia, Ukraine, Israel and Palestine – are having major consequences for households in Donegal.

Prices of home heating oil kerosene and fuels like petrol and diesel have been hit with the highest charges since Russia invaded Ukraine in February 2022.

Advertisement

Families are struggling with the spiralling costs of heating their homes with 500 litres of oil now costing over €800.

Some Donegal households are especially affected because their defective concrete block homes means using more oil to heat their children’s bedrooms due to cracks in the walls.

Families are tightening budgets ever more as they continued to struggle with spiralling cost-of-living pressures, it is claimed.

Private commuters are paying over €2 a litre to fill their tanks and public transport commuters have been warned of imminent fare increases.

Businesses like bus and coach firms and farms – which all have huge fuel cost overheads – are hoping Finance Minister Simon Harris will announce a reprieve from excise duty’s return.

Unions for teachers, who are prepared to strike over pay, say they need a boost in the annual Budget that sets out the country’s finances for the year ahead.

Workers want a rise in the minimum wage by €1.10 to €15.25, taxpayers want a reduction in thresholds, and industries like hospitality are campaigning for help with VAT.

Advertisement

For Letterkenny, the National Transport Authority (NTA) has submitted proposals for capital to be provided in the Budget for a town bus service.

Donegal County Council undertook to write to the Minister to ask for a €57m fund to help pubs, following a motion by Cllr Martin Harley, who is a publican and member of the Vintners’ Federation of Ireland (VFI).

Donegal farmers have demanded that the Budget is used to support the sheep sector through increased direct payments of €23 per ewe and an extra €10 per ewe for hill sheep farmers under the Sheep Welfare Scheme.

CHILDCARE 

Provision for increased childcare has also been called for in the Budget.

Donegal TD Pat the Cope Gallagher last week said additional childcare capacity is needed.

Meanwhile, family representatives nationwide say parents are struggling with childcare costs of €800 monthly.

A proposal to cap childcare at €10 a day – meaning some childcare costs could drop from over €800 per child to €200 a month – was made by Donegal TD Pearse Doherty.

He is finance spokesperson for Opposition party Sinn Fein.

For Donegal particularly, deputy Doherty proposed to abolish the five per cent concrete products levy, which was introduced in 2023 to help offset the costs of the defective blocks remediation scheme.

Pearse Doherty TD has said Budget 2027 must put families first.

He also proposed a permanent 10 cent reduction in petrol and diesel as well as extending excise cuts for another six months and cutting costs in home heating oil for families and argi diesel for famers.

The Government earlier this year indicated that the €250 energy credits of recent winters would not feature in Budget 2027.

But deputy Doherty proposed an emergency cost-of-living package that includes a €400 energy grant for householders.

Additionally, one million most-at-need households would receive €500 to spend on groceries.

Plus the back-to-school clothing and footwear allowance – which is currently means tested – would be extended to every child in the country.

Furthermore, deputy Doherty, from Gaoth Dobhair, stated that he would halt public transport fare increases and overhaul child benefit to lift families away from the poverty line.

Taxpayers would not pay the Universal Social Charge (USC) on the first €40,000 that they earn.

Doherty said tomorrow’s Budget should be about “putting workers and families first and making life more affordable” to “keep more money” in people’s “pockets and give workers and families the chance to build a decent life”.

Coverage of Budget 2027 from the Dail is scheduled to be televised live by the national broadcaster on RTE 1 from 12.40pm to 4pm tomorrow.

Top
Advertisement

Donegal News is published by North West of Ireland Printing & Publishing Company Limited, trading as North-West News Group.
Registered in Northern Ireland, No. R0000576. Unit 3B, Riverside Retail and Office Park, Neil T. Blaney Road, Letterkenny, Co. Donegal, Ireland.