Ibec's analysis
Speaking about Budget 2026, Fergal O'Brien, Executive Director of Lobbying and Influence said:
“Today’s Budget announcement reflects the myriad of policy challenges currently facing the country, driven by global headwinds and rapid population growth that are increasing demand for public services and infrastructure.
The resilience of our economy over the past year - despite an uncertain global trading environment and the introduction of tariffs - is not guaranteed.
This Budget strikes an important balance between prudence and ambition. It seeks to improve economy-wide competitiveness while also providing targeted measures to support the firms most directly impacted. This has been achieved by keeping day-to-day spending under control while investing ambitiously in infrastructure, skills, and innovation to drive productivity and protect and create jobs, which will deliver the greatest benefit for society.”
Ibec Budget 2026 wins
€2bn
commitment to invest an additional €2 billion in capital spending on infrastructure
35%
R&D tax credit will be increased to 35% and an increase to the first year payment threshold to €87,500
€70m
commitment on €70 million (17%) increase in innovation capital funding
9%
reduction in VAT on completed new apartments from 13.5% to 9% effective until the end of 2030. Additionally, VAT rate for food and catering businesses and hairdressing services down to 9%.
Reaction: Budget 2026
Gerard Brady and Mourad Mejdi give their reaction and analysis to Budget 2026.
Submission Overview
Promoting Productive Work and Employment via better incentives and training.
Establishing long-term investment in critical infrastructure, energy, housing and quality of life
Retooling our regulatory system towards simplification of reporting the reduction of compliance costs.
Encouraging innovation and trade by promoting public and private investment in R&D to close the gap with global innovation leaders.
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Gerard Brady is the Chief Economist at Ibec. His role involves regular analysis of economic issues for a business audience, shaping Ibec's economic, tax and fiscal policy positions and advising companies and sectoral organisations. He is a current member on the National Economic and Social Council (NESC) and the National Statistics Board. He also represents Irish business in a number of international economic and tax fora such as Business at the OECD (BIAC) and BusinessEurope. Prior to joining Ibec in 2013, Gerard worked as a Lecturer in Economics in University College Cork. He is a previous winner of the Miriam Hederman O’Brien prize awarded by the Foundation for Fiscal Studies.
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Chief economist and submission author