Budget 2027 transport measures will affect motorists, electric-car buyers and public transport users across Ireland. Here are five things to know about what these measures mean for your motoring costs and everyday journeys.
1. Is the carbon-tax increase on petrol and diesel being scrapped?
No. The increase is simply being delayed not scrapped. Essentially, the planned increase on petrol and diesel has been postponed until May 1, 2027, with the rate remaining at €71 per tonne of carbon dioxide until then. The increase next year will add €1.28 to a 60-litre petrol fill and €1.48 to a 60-litre diesel fill.
2. What support is there for electric-car buyers?
Vehicle Registration Tax (VRT) relief for eligible electric vehicles will remain in place until the end of 2028, two years beyond its scheduled expiry on December 31, 2026. While it was expected that this would be extended, it does now give some certainty to potential buyers and car dealers.
3. What does the MetroLink funding announcement mean?
An extra €6 billion has been announced for MetroLink’s delivery between 2027 and 2030. It may sound significant and it’s a substantial commitment, but the project comes with substantial costs.
4. How much is being allocated to transport?
Transport spending will total €5.6 billion in 2027, with continued investment in public transport aimed at improving connections nationwide. The true test of this investment will be for passengers waiting at a bus stop or planning a train journey: has services improved, what about frequency and just generally has getting from A to B becomes easier.
5. What is changing for school transport?
Extra funding allocated in the budget will help support daily school transport for around 180,000 children. However, it’s worth noting that 180,000 is the number the provision will serve; it does not mean 180,000 new places are being created.
