BUDGET 2027:
A little more in our pockets – but will Irish consumers feel better off?
By Sonia Harris Pope, Founder & Managing Director, Harris PR
There has been no shortage of Budget 2027 analysis over the past 24 hours.
Who gained? Who lost? How much will be in your pocket? What happens to your tax bill?
All important questions. But at Harris PR, we’re looking at the Budget through a slightly different lens for our clients: Will Irish consumers actually feel better off in 2027, and what will that mean for the brands, businesses and organisations trying to reach them?
My sense is that the answer to the first question is: a little, perhaps. But probably not as much as the headline figures might suggest. And that makes the second question much more interesting; more money, but more bills too.
There is undoubtedly some welcome news for households in Budget 2027. Changes to income tax will increase take-home pay for many workers. The minimum wage is increasing. Social welfare and pension payments are rising. There are additional childcare, housing and targeted cost-of-living supports. On paper, many households will have more money. But consumers don’t experience the economy on paper. They experience it at the supermarket checkout. At the petrol station. When the electricity bill arrives. When they renew their insurance. When the rent is due.
Conor Pope summed up that contradiction brilliantly in The Irish Times, describing this as a “Schrödinger’s Budget”, simultaneously generous and mean. His analysis estimates that grocery inflation alone could add around €500 to a household’s costs during 2027, while rising heating, electricity and motoring costs could add approximately another €800. Suddenly, some of those Budget gains look rather different.
The consumer isn’t necessarily going to spend more
That’s one of the most important things we’re discussing with our clients this week.
It would be very easy to look at tax cuts and increased supports and conclude that consumers will have more disposable income in 2027. I don’t think it’s that straightforward.
After several years of cost-of-living pressures, Irish consumers have become incredibly conscious of where their money goes, and I don’t see Budget 2027 reversing that.
Instead, I think we’re looking at another year in which people will continually assess: Is this worth my money? That matters whether you’re selling groceries, a car, a gym membership, a Christmas present, a night out, a cultural experience, or a family holiday.
But here’s where I think it gets interesting for brands.
Value doesn’t mean cheap! One of the mistakes brands can make during a cost-of-living squeeze is assuming that everything becomes about price. It doesn’t, because value and cheap are not the same thing. Value might mean buying something better that will last longer. It might mean paying for a gym membership because your physical and mental health matters to you. It might mean investing in solar panels because you want to reduce your exposure to future electricity costs.
It might mean choosing an electric vehicle because you’re looking at the total cost of ownership rather than simply the purchase price. It might mean taking the family somewhere that offers shopping, food, and free entertainment all in one place. Or it might mean deciding that a concert, festival or cultural experience is absolutely worth spending money on because experiences matter too. The challenge for brands in 2027 will be to demonstrate their value, rather than simply declare it.
Different sectors will feel this Budget very differently. That’s been particularly apparent as we’ve worked through Budget 2027 for Harris PR clients.
For retailers such as Lidl and Amazon, value, choice and helping household budgets stretch further will remain enormously important.
For Dundrum Town, there’s an opportunity to continue evolving retail into experience, giving people compelling reasons to visit, spend time and create memories as well as shop.
For Ford, the extension of EV VRT relief alongside increased VRT on many higher-emitting vehicles creates another important moment in Ireland’s transition towards electrification, and an opportunity to help motorists understand the real cost of their next car.
For Activ8 Solar Energies, the continued investment in home-energy upgrades strengthens an increasingly powerful consumer proposition: moving the conversation from short-term energy supports towards longer-term energy independence.
For organisations operating in health and wellbeing, from Holland & Barrett and BD Gyms to ReproMed, affordability matters, but so does the extent to which consumers continue to prioritise their health and wellbeing even when finances are under pressure.
For St. Patrick’s Festival and Púca Festival, the value of accessible culture, shared experiences and tourism becomes particularly interesting. Púca also sits squarely within Ireland’s ambition to grow regional and shoulder-season tourism.
And then there are our charity clients. For them, the Budget needs to be viewed through an entirely different lens. The gap between a Budget measure and lived experience is wide. A €10 increase in a weekly payment looks one way in a Budget table. It can look very different to someone facing higher grocery bills, energy costs, transport costs or the additional expense associated with illness, disability, or a medically necessary diet.
That’s why the work of organisations including Childhood Cancer Ireland, the Coeliac Society of Ireland, FirstLight, the Irish Haemochromatosis Association and INGO remains so important. One of the things we are encouraging our charity clients to do isn’t simply to say whether they “welcome” Budget 2027, it’s to explain what it actually means. What does a measure mean to the family travelling regularly to hospital with a sick child? What does food inflation mean when gluten-free food isn’t a lifestyle choice but a medical necessity? What does increased health expenditure mean if people still aren’t being diagnosed early enough? And what happens to demand for charitable services when household finances remain stretched? Those are the stories behind the numbers.
What should brands do next?
I don’t think brands need to rush out and “newsjack” the Budget and in many cases, they shouldn’t. But they should understand the environment their customers will be living in. For us, there are a few principles that will shape consumer communications in 2027:
Prove your value. Don’t just tell people you’re good value. Demonstrate what they actually receive for their money.
Be useful. Brands that genuinely help consumers navigate challenges will earn attention and trust.
Understand that affordability isn’t the same for everyone. A national Budget produces very different realities depending on income, family circumstances, health, housing and location.
Don’t underestimate experience. People may become more considered about spending, but that doesn’t mean they stop wanting joy, entertainment, culture, travel and connection.
Use evidence. Proprietary research, customer data, price comparisons and real-life case studies will be far more powerful than generic commentary about the cost of living.
And perhaps most importantly:
Understand the person behind the consumer.
Because budgets are ultimately about people, not percentages, tax bands or expenditure ceilings. People deciding whether they can afford the weekly shop or to replace the car or go out for dinner or to book the festival tickets or invest in their home or donate to a charity. Budget 2027 may put a little more money into some people’s pockets. But in 2027, brands will still have to work hard to earn their share of it.
Sonia Harris Pope
Founder & Managing Director
Harris PR
