Welcome supports for infrastructure in Budget 2025, but more ambition needed for urban areas
Cork Chamber, the voice of business in Cork, welcomes the publication of Budget 2025 today, with much-needed funding announced for critical housing and enabling infrastructure. However, concerns remain around the cost of doing business, as well as investment in urban areas around the country.
A welcome boost to infrastructure and housing delivery
Conor Healy, CEO of Cork Chamber, said, “Infrastructure is a critical priority for our members, and indeed for businesses across Ireland; we cannot maintain and strengthen business investment and expansion in Ireland without significant and sustained investment in strategic infrastructure projects. We welcome the commitment made by Government today to ringfence funding for infrastructure investment, with €3 billion allocated to investment in water services, the electricity grid, and housing development through the Land Development Agency.
“The early indications that the €14 billion tax windfall will also be directed towards the four key infrastructure pillars of transport, housing, electricity and water is positive as we do need to address infrastructure challenges to ensure Ireland remains competitive.
“The €99 million funding agreement between the Port of Cork and the Ireland Strategic Investment Fund is a hugely welcome development. The Port of Cork is on the cusp of significant development to facilitate the offshore renewable energy industry; the funding announced today will enable the Port to unlock the vast economic benefit that the offshore renewables sector will bring, while also supporting the achievement of our climate targets in the years ahead.”
Supports for businesses extended
“Today’s announcement of expanded thresholds and extended timelines for a number of entrepreneur and enterprise supports is welcome, particularly the Employment Investment Incentive Scheme (EIIS), Start-Up Relief for Entrepreneurs (SURE), extensions to CGT Entrepreneur Relief and changes to Retirement Relief. Measures such as the increased R&D tax credit thresholds from €50,000 to €75,000, as well as the simplification of the foreign dividend tax relief scheme, will also encourage further innovation and investment, all of which play a vital role in enhancing Ireland’s competitiveness on the global stage.
“The increase in funding for the National Childcare Scheme announced in today’s Budget are welcome and will enable more people to return to work but systemic challenges still remain in the childcare sector that must be addressed.
“While the €170 million energy subsidy scheme for businesses announced today is welcome, many micro enterprises and SMEs are still facing challenges ahead with increased costs and administrative burdens unlikely to abate any time soon, and we had hoped to see greater ambition and increased supports for vulnerable businesses in Budget 2025.”
Boost for further education
Rob Horgan, President of Cork Chamber, welcomed the Government’s plans to unlock the National Training Fund (NTF) to support third level institutions and training programmes: “At a time when our third level institutions are suffering from a considerable funding gap – estimated by Government to be €307 million – we welcome the announcement of multi-annual funding for third level as part of the deployment of the €1.5 billion currently in the National Training Fund (NTF).
“Upskilling our workforce is critical to Ireland’s ongoing competitiveness and we welcome the Government’s commitment to invest in apprenticeships and further training programmes.
“However, the €150 million increase per annum in core funding for higher education announced today for will not fully bridge the funding gap that exists in third level at present and we hope to see further investment in the education sector in the coming months and years.”
More ambition needed for urban centres
Mr Horgan continued “In our pre-Budget submission, we called on Government to introduce Urban Evolution Deals – bespoke funding agreements between central government and local authorities to reinvigorate our urban centres. Government committed today to allocate €186m funding for the regeneration of our urban centres, yet more ambition and additional funding is needed to drive sustainable, positive change in Cork’s city and towns.
“Social cohesion is critical to the enrichment and attractiveness of Ireland’s towns and cities, therefore, we welcome the expansion of the Community Recognition Fund.
“Cork Chamber looks forward to further detail being provided on each element of budget over the next few days.”
