Budget 2026: Emphasis on competitiveness welcome, but delivery on housing and infrastructure must be accelerated

Cork Chamber, the voice of business in Cork, has welcomed the emphasis on economic competitiveness in Budget 2026, but has urged government to provide clarity regarding strategic investments and delivery timelines, vital to Ireland’s long-term competitiveness.
 
Competitiveness to the fore
 
Conor Healy, Cork Chamber CEO, said, “The budget delivered today demonstrates a recognition of the importance of future-proofing Ireland’s competitive offering amid evolving international trading conditions. However, further efforts to reduce administrative and cost burdens on businesses of all sizes, particularly SMEs, while also enabling entrepreneurship and innovation, are central to supporting ongoing competitiveness and encouraging economic growth. 
 
“The announcement today of an increase in the R&D tax credit to 35% is a welcome step forward, alongside the upcoming publication of an R&D Compass to set out further improvements in the coming weeks. Enhancing the competitiveness of Ireland’s overall tax regime is also critical, and we welcome moves to simplify the tax regime for businesses when it comes to interest deductibility. 
 
“Enhancing the Capital Gains Tax Revised Entrepreneur Relief, supporting entrepreneurs to grow their businesses, is another welcome step, as is the extension of the KEEP scheme announced today.”
 
Mr Healy added, “Another important strand of Ireland’s competitiveness is our strong talent and skills pipeline; a commitment to increased supports for apprenticeships will be critical to support infrastructure delivery. We also welcome the continued investment in early learning and childcare, critical to workforce participation and regional competitiveness. However investment alone will not increase the availability and affordability of childcare.”
 
Welcome support for housing delivery
 
Cork Chamber President Rob Horgan added, “Housing remains one of the most pressing concerns for the business community in Cork and across the country. A reduction in VAT on the sale of completed apartments and enhanced corporate tax deductions for apartment development costs will help to increase the viability of apartment developments and address acute housing shortfalls.  
 
“The expansion of the living city initiative to help address vacancy and dereliction in urban centres will support the delivery of above-shop housing units, while also bringing additional people into our urban centres. Creating and maintaining welcoming, vibrant urban centres is a critical strand of Ireland’s competitive offering, attracting talent, investment and tourism. 
 
“Funding announced today to facilitate the recruitment of 1,000 new Gardaí next year will also help to support safety in communities across the country, and regional allocations should be proportionate to the population growth projected in the National Planning Framework. A commitment to reducing the VAT rate for food-related hospitality next year, as well as increased supports for the tourism sector, is also important in this regard.” 
 
Infrastructure investment needed to secure long-term competitiveness
 
Mr Healy added, “It is disappointing that we are still waiting for government to provide additional detail on funding for specific infrastructure projects and delivery timelines. What we need to see from government is a clear commitment to the delivery of key strategic infrastructure projects, on time and on budget. This must be a priority as government moves towards implementation of the revised National Development Plan in the months ahead.
 
“We look forward to seeing further detail on funding allocations in the sectoral investment plans set to be published by each department in the coming weeks.”