Retail Ireland reaction to Budget 2026
- Cost pressures remain acute concern for retail sector
- Commitment to additional Garda resources welcome
Retail Ireland, the Ibec group that represents the Irish retail sector, today welcomed the Government’s commitment to additional Garda resources as part of Budget 2026, but cautioned that rising business and employment costs remain a major and ongoing challenge for the sector.
Retail Ireland Director Arnold Dillon said: “Additional resources for the Gardaí are welcome and should be used to increase the visible Garda presence in town and city centres. This will help support public safety, assist retailers, and give shoppers greater confidence.
Mr Dillon noted that while the Budget demonstrates a sensible level of ambition in addressing key national infrastructure challenges, retailers continue to face intense business and employment cost pressures:
“The 5% increase in the National Minimum Wage will put significant pressure on many retail businesses. Beyond the direct impact, many companies face knock-on wage pressures across all staff grades. Unlike the hospitality sector, most retailers will not benefit from the VAT reduction announced in the Budget. Safeguarding jobs and addressing these competitiveness pressures must be a priority in the months ahead.”
Retail Ireland also highlighted the importance of measures that support consumer demand and protect household spending power:
“The failure to index income tax bands will erode real disposable income for many households, potentially undermining consumer confidence and domestic demand. Retailers need policies that help support spending in the domestic economy, while enabling businesses to manage rising costs.”
Mr Dillon added that the Budget’s commitment to infrastructure, skills and innovation is essential to Ireland’s long-term economic resilience:
“Continued investment in town and city centres and in public transport benefits local economies and underpins the vitality of our retail centres nationwide. A modern, well-connected, and safe retail environment is key to supporting jobs and vibrant communities.”
