Irish Government cuts RTÉ 2027 funding by €20 million over slow reform pace

Funding decision and government rationale

The Irish Government confirmed in Budget 2027 that public funding for RTÉ will be capped at €240 million next year, delivering €20 million less than agreed under the multi-annual funding framework established in 2024. The 2027 allocation consists of €174 million in projected television licence fee collections and €66 million in direct Exchequer support. Media Minister Patrick O'Donovan explained that the broadcaster would receive an €11 million funding increase rather than the scheduled €31 million increase. O'Donovan stated that his department faced restricted resources and expressed dissatisfaction with the pace of RTÉ's transition toward becoming a smaller and more agile organisation.

While progress has been made across a number of issues, I am not happy that we have seen sufficient progress in delivering the smaller, more agile organisation that we want to be delivered under the strategy.

Broadcaster pushback and strategy concerns

RTÉ Director General Kevin Bakhurst rejected the minister's assessment in an internal message to staff, stating that the funding reduction arrived without prior notice. Bakhurst explained that the broadcaster had built its operational planning around the three-year, €725 million package, which allocated €225 million in 2025, €240 million in 2026, and €260 million in 2027. Broadcaster leadership stated that the sudden shortfall complicates delivery of its five-year strategic plan, which relies on multi-annual state funding to maintain independent news coverage, original Irish drama, live sports, and digital services such as the RTÉ Player. RTÉ chair Terence O'Rourke has requested an urgent meeting with O'Donovan regarding the multi-annual commitment.

The Government's decision to reduce this public funding agreement by €20m at this late stage, when we have already made important commitments to our audiences, to the independent sector, to other important stakeholders and to RTÉ staff, is one we had not anticipated and will inevitably impact on our ability to deliver our five-year strategy.

Broadcaster restructuring and staffing targets

Over the past two years, RTÉ implemented several structural adjustments, including axing its in-house documentary unit, outsourcing religious affairs programming, and cancelling the current affairs programme Upfront with Katie Hannon. The broadcaster has also prepared plans to outsource production for Fair City and The Late Late Show to external production companies. Government officials, however, cited disappointment with the progress of RTÉ's workforce reduction programme, which aims to cut 400 jobs or up to 20% of staff between 2025 and 2029 through voluntary redundancy. The organisation's finances have faced pressure from falling licence fee revenues, requiring state top-ups of €41.3 million last year and €54.8 million this year.

Cabinet negotiations and next steps

The funding decision followed bilateral budget negotiations between O'Donovan and Public Expenditure Minister Jack Chambers, who had previously clashed over spending proposals such as a €100 arts card for 16-year-olds. O'Donovan noted that allocating the full €260 million to RTÉ would have absorbed nearly 70% of his department's budget uplift for 2027. The minister announced that he intends to update the government on RTÉ's reform delivery, prospective changes to the licence fee collection system, and the state funding model beyond 2027. State officials confirmed that broadcaster resourcing for public service content will remain under ongoing government review.