The Finance Minister will this morning update the Cabinet on his plans for this year’s budget.

Paschal Donohoe is expected to tell his colleagues that Budget 2020 will be based on the assumption that the UK will crash out of the EU without a deal.

That is one of two scenarios he outlined in his Summer Economic Statement in June.

Spending

That is likely to mean the Government will need to borrow heavily if it is to follow through on its promise to increase capital spending by €700m.

Minister Donohoe will also need to find funds to increase social welfare spending and introduce supports for industries likely to be hardest hit by a no-deal Brexit.

He may need to seek changes to State-aid rules in order to offer financial assistance to businesses in the firing line.

He will outline Budget 2020 in the Dáil on October 8th.

Abhaile

The Cabinet will also discuss plans to extend the State-funded scheme assisting people in mortgage arrears.

Ministers Charlie Flanagan and Regina Doherty will bring a memo calling for an investment of more than €17m to keep the Abhaile project running over the next three years.

The scheme has given advice to more than 12,000 households at risk of losing their home since it was established in 2016.

It is estimated around 22,000 homes are currently in long term mortgage arrears.