Minister for the Environment Phil Hogan has confirmed that motor tax will be increased in next month's Budget.

Mr Hogan told RTÉ's The Week in Politics that there would be "adjustments in the bands and in the rate" of motor tax.

He said Minister for Finance Michael Noonan will have to raise money from motor tax as part of the effort to reduce the budget deficit.

But Mr Hogan said there was no truth in reports that motor tax would rise by as much as 63%.

Meanwhile, Minister for Health Dr James Reilly has said his department will have to endure cuts in the Budget, but final decisions had not been made yet.

Dr Reilly said everything was on the table in terms of cuts.