Budget 2027: Focus on economic resilience welcome, further support for business needed
Cork Chamber, the voice of business in Cork, has welcomed Budget 2027’s focus on strengthening Ireland’s economic resilience, while noting it is a missed opportunity to further address the cost burden on business.
Welcome investment in critical economic enablers
Cork Chamber President Susie Horgan commented, “Budget 2027 comes at a time of significant global uncertainty, making it more important than ever that Ireland continues to build resilience, maintain competitiveness and invest in the foundations for sustainable economic growth. Today’s measures contain a number of positive steps, particularly through investment in critical infrastructure, skills, enterprise, childcare and other supports that can help reduce costs for business.
“Cork Chamber welcomes measures to reduce the cost of childcare, particularly the reduced monthly fee caps and the increase in the Childcare Services Relief tax exemption. The latter is a tangible step towards the dual-incentive model, which we advocated for in our recent report, ‘Childcare Provision and its Impact on the Workplace’. However, further action is needed to build capacity, strengthen the workforce and expand flexible childcare provision. We also continue to advocate for greater employer-supported childcare solutions, including tax incentives for corporate crèches.
“Investment in skills is another critical economic enabler. The commitment of €150 million over three years from the National Training Fund towards reskilling and upskilling in response to AI is particularly timely. Cork Chamber members have highlighted the growing impact of AI on business operations and the need for accessible supports that enable businesses and their people to harness its potential. While the release of funding is a welcome step, there is significant scope to make greater use of the National Training Fund to respond to evolving workforce and skills needs and support lifelong learning. Addressing the core funding gap in further and higher education must also be prioritised to ensure the continued competitiveness of Ireland's talent offering."
Funding for strategic transport and infrastructure projects crucial
Cork Chamber CEO, Conor Healy, said, “Continued funding for key transport projects of strategic importance in the region is particularly welcome, including the Cork Area Commuter Rail Programme, BusConnects and the M28 Cork to Ringaskiddy Motorway. However, consideration should also be given to the progression of other crucial projects for the region, such as Luas Cork, the Cork Northern Distributor Multi-modal Route, the M20 Cork to Limerick Motorway and the R624 Great Island Connectivity Scheme.
“Aims to enable local authorities to invest more in capital projects through additional borrowing could play a key role in incentivising the delivery of regional infrastructure and urban regeneration, however further clarity on the detail of the scheme is needed.
“Investment in the State’s critical infrastructure, including energy, water and wastewater, is crucial to economic resilience and will support housing and economic development. Further measures announced today to support the delivery of much-needed housing are welcome, however additional actions are needed to further stimulate the housing market and improve accessibility and affordability, including changes to cost-rental household eligibility thresholds, in line with recent Cork Chamber research findings.
“Security has emerged as a key priority for Cork Chamber members. Investing in the security of our critical infrastructure is essential, and today’s announcement of funding for cybersecurity, maritime security and defence is welcome in the current context. Support for additional trainee Gardaí is also welcome in this regard; sufficient allocation for the Cork region in line with population growth should be prioritised.”
Continued focus on supportive enterprise ecosystem vital
Mr Healy continued, “Today’s budget set out a number of important measures to support enterprise growth and competitiveness. Cork Chamber has consistently advocated for a more supportive enterprise ecosystem, for start-ups and SMEs, as well as large indigenous and multinational firms.
“Innovative start-ups and scaling Irish enterprises are crucial to Ireland’s economic resilience; announcements in today’s budget to establish Startup Ireland and to launch an investment programme of €1 billion to develop the next generation of large Irish companies through the Ireland Strategic Investment Fund are particularly welcome in this regard.
“Reforms to critical aspects of the taxation regime for enterprise announced today will play an important role in enhancing the State’s offering as a location for investment and growth. For example, the modest cut in Capital Gains Tax is welcome, but should be extended further, along with other taxation reforms. Measures to enhance the R&D Tax Credit and extend the Knowledge Development Box will strengthen Ireland’s innovation economy. The new Irish investment account scheme will also play a role in encouraging investment by mobilising domestic funds.
“Government’s commitment to undertake a holistic assessment of enterprise supports and business development programmes currently available is welcome and should allow for a further strengthening of the State’s overall enterprise ecosystem. Supporting SMEs is crucial to drive regional growth and competitiveness, and Cork Chamber strongly welcomes reforms to the Enhanced Reporting Requirements announced today, in line with the Cost of Business Advisory Forum’s recent recommendations. However, Government should also prioritise the implementation of the forum’s remaining recommendations in the coming months in order to support SMEs, particularly given increases to the minimum wage and additional costs on businesses.
“Charting a course to future competitiveness has never been more crucial; global uncertainty continues to impact firms here at home. Providing certainty and stability for business to invest, expand and grow in Ireland is vital."
