Ibec welcomes enterprise-focused Budget to shore up economic resilience and protect jobs

Ibec, the group representing Irish business, has welcomed Budget 2026’s focus on driving innovation, protecting and creating jobs, and increasing investment in critical infrastructure. The measures announced will support business growth and the viability of housing development.

Budget 2026 demonstrates sensible ambition, particularly through its continued commitment to invest an additional €2 billion in capital spending on infrastructure, as well as further investment in skills and innovation to drive productivity. The introduction of a 9% VAT rate and changes to corporate tax for apartment construction is not a panacea for addressing housing shortages, but it represents an important step towards stimulating much-needed housing supply.

A number of other key recommendations advocated by Ibec have been adopted, including the expansion of the Research and Development (R&D) tax credit to 35%, up from 30%, and the widening of the scope of qualifying research - crucial measures for fostering high-value job creation among both Irish and international firms.

For some time, Ibec has highlighted growing cost-competitiveness challenges, exacerbated by tariffs and rising operational costs. The Government’s commitment to support some vulnerable businesses through a VAT reduction for the hospitality sector is therefore welcomed, albeit it leaves many out of scope.

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.”