A Shift in Fiscal Strategy
The Irish Congress of Trade Unions (ICTU) has officially released its pre-Budget 2027 submission, signaling a sharp pivot away from the government’s recent reliance on what it terms “gimmicks and giveaways.” Representing 44 unions and 800,000 workers, the ICTU is pushing for a structural overhaul of state spending to address the ongoing cost-of-living crisis.
At the center of the proposal is a call for a €1 increase in the national minimum wage, a move the ICTU argues is essential to securing a genuine living wage for low-paid workers. General Secretary Owen Reidy stated that the government must move beyond short-term tax breaks, which he claims have failed to provide long-term security for PAYE workers.
Key Policy Proposals
The submission outlines several major fiscal demands aimed at strengthening the social safety net:
- Tax Reform: The ICTU is calling for double indexation of the income tax system to compensate for the lack of adjustments in the previous budget cycle. It also advocates for broadening the tax base through the elimination of certain capital acquisitions tax reliefs and the introduction of a Site Valuation Tax.
- Cost of Living Supports: Proposals include capping childcare costs at €200 per month and ending the freeze on pay-related jobseeker’s benefits.
- Public Infrastructure: The union is urging increased state investment in public transport and green energy, framing these as fundamental to both economic stability and the transition to a sustainable economy.
Reidy emphasized that the upcoming budget represents a critical juncture for the government. “If the Government is serious about workers’ living standards, it has to end the gimmicks and give-aways, and invest in the workers that make this country run,” he noted. The submission now sets the stage for negotiations ahead of the formal October 2026 budget announcement.