The Taoiseach has said that a reduction in tax is a priority of government but guarantees regarding the budget cannot be given at this stage.

Speaking in Sligo, Mr Kenny said that if the economy continues to grow and strengthen any flexibility will of course be shown to hard pressed people.

The Taoiseach said that flexibility in the tax system is something the Minister for Finance has always used, and wants to see it used in the next two budgets.

Mr Kenny added that it's a priority for the budget but that this is dependent on the strength and growth of the economy.

Mr Kenny also said that the government will announce its construction sector strategy this week, adding that there are a 100,000 people skilled in this sector that we need to get back to work.

The Minister for Communications earlier said the Government needs to refocus and recognise that people expect some alleviation after years of tax rises and spending cuts.

Speaking on RTÉ's Morning Ireland, Pat Rabbitte said the past couple of months had not been good for the Government.

He said the Coalition parties needed "to get a grip" and focus on the issues that are concerning the public.

Mr Rabbitte said people had paid a huge price for the economic crash and that the perilous conditions that prevailed when the Coalition took office no longer exist.

He said the Government should examine the possibility of easing the financial burden on households.

"Six years into this recession, people are saying 'we've had enough'," he said.