RTÉ has warned that it faces “important decisions” after the Government cut its agreed public funding for 2027 by €20 million.

The broadcaster said it was informed that, as set out in Budget 2027, the Government had decided to reduce its public funding for next year.

The funding decision comes as local and independent radio stations continue to face significant financial pressures, despite playing an important role in providing news, current affairs and community coverage across the country.

While RTÉ receives hundreds of millions of euro in public funding under its multi-annual funding arrangements, local broadcasters continue to operate largely on commercial revenues, prompting ongoing debate within the sector over how public service broadcasting should be funded and supported.

In 2024, the Government committed to providing RTÉ with €725 million in public funding over three years, covering the period from 2025 to 2027.

Under the written multi-annual agreement, RTÉ’s public funding was to be made up substantially of TV Licence revenue, alongside additional exchequer funding up to an agreed level on a phased basis.

Funding for 2027 was due to amount to €260 million.

Chair of the RTÉ Board Terence O’Rourke is now seeking a meeting with the Minister regarding the multi-annual commitment made in 2024.

RTÉ said it has committed to numerous agreements with stakeholders on the basis of the written and publicly announced funding agreement.

Director-General Kevin Bakhurst said the clarity provided by the multi-annual agreement had allowed RTÉ to plan ahead, including delivering news and analysis, producing additional public service programming and content, investing in podcasts, apps and the RTÉ Player, and stabilising its finances.

He also rejected the assertion that reform and transformation at the broadcaster had been slow.

Mr Bakhurst said around 90% of the EAC report recommendations have been implemented, while almost 100 people have already exited the organisation despite what he described as the late approval of the Voluntary Exit Programme and a short window for departures.

He said the €20 million reduction had not been anticipated and would “inevitably impact” RTÉ’s ability to deliver its five-year strategy.

Mr Bakhurst added that if the three-year multi-annual agreement is no longer honoured, RTÉ now has “some important decisions to make”.