There will be “intense engagement” in Government over the make-up of the tax package planned for Budget 2027, which will be “larger” than last year, Tánaiste Simon Harris has said.The Minister for Finance also said he is “positively disposed” to changes to tax bands that would see people able to earn more before they start paying the higher 40 per cent tax rate. His remarks came in advance of Wednesday’s announcement of the Summer Economic Statement (SES) alongside Minister for Public Expenditure Jack Chambers. The statement is expected to adhere to the expenditure limits laid out in last year’s medium-term fiscal plan to keep expenditure increases to 6 per cent a year.This will mean that expenditure increases will be limited to €7 billion next year, while €1.5 billion will be set aside for a tax package likely to protect workers from inflation and increase take-home pay.The Irish Times reported on Wednesday that the €1.5 billion is likely to grow to €1.7 billion at least on budget day, as the Government will extend the bank levy for another year, giving Harris another €200 million for the tax package. As such the overall budget day package is likely to grow to almost €9 billion, according to sources familiar with Government thinking.Speaking to reporters on his way into Cabinet, Harris said the SES is “a pivotal moment in the annual budgetary cycle”. He said the additional sums to be announced as being available for spending and tax measures will be part of a budget for next year that will be “well over €120 billion”. Harris said he has been clear on the need for an income tax package, adding: “There are far too many people in this country who play by the rules, who work really hard, sit in traffic and find themselves at the end of the week, end of the month, just about getting by let alone getting ahead.”[ Why Simon Harris will really struggle to move the dial on income tax in the BudgetOpens in new window ]He said there will be a personal income tax package, adding that there also has to be legislation “to bring about an investment and savings account to help people’s money work harder for them” and a childcare package that helps with costs and access. It was put to Harris that moving the threshold where the higher rate of income tax kicks in from €44,000 to €46,000 would see people earning more than that better off by €400 and was asked if that was enough, given the lack of an income tax package in last year’s budget. Harris said that such figures are currently “in the space of speculation”.He added: “It will be a larger tax package than was available last year, but how we decide to best divide that and best deploy that will be a matter for intense engagement across Government in the weeks ahead.“I am positively disposed to the idea around bands because, if wages are rising and bands don’t increase, people end up paying more tax. I don’t think that’s fair.”He said there has been progress on increasing the bands since 2015, adding: “I’d like to see us build on that.”