Budget 2027 provides welcome support, but further action needed on business costs
Chambers Ireland and its network of affiliated members, including Ennis Chamber, welcome Budget 2027 as a positive and constructive package for workers and families that will support competitiveness and businesses across the country, while noting that further action is needed to address business cost pressures, especially for small to medium size businesses.
Chief Executive of Chambers Ireland, Ian Talbot, said, “This Budget was presented as a budget for workers and we support measures that ease cost-of-living pressures. It does not, however, address the full range of business costs affecting many of our members. Support for workers and families, investment in infrastructure and a stronger focus on education and training will nevertheless help Ireland’s competitiveness and support businesses across the country. The new Savings and Investment Account also has the potential to mobilise funding for growing indigenous businesses.”
Chambers Ireland also welcomed the commitment to increase and streamline local authority spending. Ian Talbot added, “Our network of 36 Chambers represents businesses in towns, cities and counties across Ireland, so regional development is a core priority for us. Giving local authorities greater capacity to invest in the capital projects that matter to their communities can improve the vibrancy and efficiency of local areas. We called for this in our Pre-Budget Submission and welcome its inclusion in the Budget.”
The allocation of €150 million from the National Training Fund to strengthen Ireland’s AI readiness is also welcome news. “Building AI capability is becoming an important test of national competitiveness. Ireland must help SMEs use AI to streamline their operations and raise productivity. That requires accessible, industry-led training and practical support.
Infrastructure
Infrastructure delivery was a central priority in Chambers Ireland’s Pre-Budget Submission. Welcoming the Budget commitments, with investment in national transport projects a priority for Chambers across the country. The Government’s continued emphasis on funding and delivery is welcome. The value of these commitments will be measured by whether they result in tangible improvements for people and businesses in our towns and cities.”
Childcare Package
The commitment in Budget 2027 to reduce childcare costs is good for families and good for business. Childcare is a major household expense and today’s announcement will bring relief to many families. The Government must also support providers to expand capacity and meet growing demand for places.
Safety
The provision for 1,000 additional Gardaí is a significant and timely measure, given the concerns raised by Chambers from across the country, including Ennis Chamber, about public safety and confidence in town and city centres.
A safe and welcoming environment is essential for thriving communities and local economies. Additional Garda numbers can strengthen visible policing and help business workers and customers feel more confident in our town and city centres. The priority now is to ensure these new resources are deployed where they can make the greatest difference.”
Ian Talbot concluded, “The value of Budget 2027 will ultimately depend on the speed and effectiveness with which its commitments are delivered. The Government must also prioritise implementation of the Cost of Business Advisory Group’s recommendations to further demonstrate its commitment to Irish businesses and entrepreneurs.”
Concern for Small Businesses
Margaret O’Brien, CEO Ennis Chamber expressed concern for member businesses operating in the retail and tourism sectors, specifically in relation to the further increase in the minimum wage. She noted, “Many Ennis Chamber members have articulated disappointment regarding the Government’s decision to accept the Low Pay Commission’s recommendation of a €0.79/hour increase in the National Minimum Wage.
This decision pushes up the statutory baseline from €14.15 to €14.94 per hour, dealing a significant blow to small businesses who are already drowning under the rising costs of doing business. To understand the cost implications, on a 39-hour full-time work week, a €0.79/hour increase translates to an additional €30.81 per week gross, costing the employer €1,602.12 more per year in wages per worker. One of our members commented that they now see themselves in business to survive, not to make profit.”
She concluded, “So while Budget 2027 offers welcome support for workers and families, investment in infrastructure and a stronger focus on education and training, the additional cost burden for small businesses, already struggling, is of significant concern.
Ends.
